Philly Fed Index Rises to 8.3 in July

Manufacturing in the Philadelphia region expanded in July for a second month as increasing spending and consumer confidence boosted production, the Federal Reserve Bank of Philadelphia reported Thursday.

The bank’s economic index increased to 8.3 this month from 4 in June. A positive reading signals a higher percentage of the manufacturers surveyed reported business improved than deteriorated.

anufacturing accounts for about 20% of U.S. economic production and is one of trucking’s largest and most important customer segments.

Economists had expected the Philadelphia bank's index to rise to 7, Bloomberg reported.

A separate report released earlier this week from the New York Fed showed manufacturing in the state expanded in July for the third consecutive month, led by rising new orders and shipments.

Meanwhile, the Philadelphia report found that indicators for new orders and shipments suggest growth for the first time since the first quarter. In addition, manufacturing executives remain generally optimistic that business conditions will improve over the next six months.

The Philadelphia Fed surveys about 100 manufacturers for the index in eastern Pennsylvania, Delaware, and southern New Jersey.