Manufacturing in the US Mid-Atlantic region unexpectedly grew at its fastest rate in two years in June, suggesting a surprisingly strong recovery in the national factory sector, data showed today.
The Philadelphia Federal Reserve Bank said its business activity index jumped to 18 in June, its highest since April 2005 and up from 4.2 in May.
Economists had forecast a more modest rise to 7.
Any reading above zero indicates growth in the region's manufacturing. The index has been above zero for six straight months, but survey's main gauge of price pressures moderated.
The new orders index, a gauge of future growth, surged to 18.3 in June from 8.7 in May.
However, the six-month business conditions outlook declined to 16.7 in June from 30.8 in May.
In other upbeat US economic news today, a forward-looking economic gauge pointed to a pick-up in US economic growth.
The Conference Board, a private research firm said its index of leading economic indicators rose 0.3% in May, suggesting the economy will strengthen through the summer and into the fall.
Ken Goldstein, an economist for the Conference Board, said the index may be suggesting that the economy has weathered the negative impact of a housing slump and a spring increase in petrol prices.
