Regional Manufacturing Surveys Show Expansion

wo regional manufacturing surveys released Thursday increased in April, suggesting the sector is continuing to gain steam following a long slump.

The Federal Reserve Bank of New York said its manufacturing index rose to 36.1 in April from 25.3 the month before. The measure has exceeded zero, showing that a majority of manufacturers said business improved, for 12 straight months.

Also, the Fed Bank of Philadelphia said its general economic index for April rose to 32.5 from 24.2 in March. The index reached a 10-year high of 38.8 in January and has been above zero since June.

he Philadelphia report said the new orders index rose four points to 26.1, and the current shipments index increased five points to 27.7.

It also said the percentage of firms expecting to increase employment was 40%, while those expecting to decrease employment was 14%.

Similarly, the New York Fed said its gauge of the number of employees more than doubled this month to 19.8 from 9.7 in March. The survey's hiring index for the next six months rose to 29 from 24.7 the previous month.

A gauge of factory shipments climbed to 41.6 in April from 26.3. The New York Fed's index of unfilled orders increased to 6.4 this month from 3.3 in March.

The report showed 47% of companies surveyed said business improved from March, while 11% saw deterioration. The index of new orders rose to 31.6 this month from 23.5 in March.

A gauge of expected business conditions over the next six months fell to 48.9 this month from 53 in March.

The Empire State survey began in July 2001, when the U.S. was in a recession. Before this report, the index was positive for 11 consecutive months, longer than those from national surveys of manufacturing by the Fed in Washington and by private groups.

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

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