Manufacturing conditions in the region improved in June, according to a report by the the Philadelphia Federal Reserve Bank released on Thursday.
The broadest measure of manufacturing conditions increased from 6.7 in May to 15.2 in June. That is the highest reading for the index since December. Analysts polled by Thomson Reuters had forecast the Philly Fed business index to rise to 8 for the month of June. (Tweet this)
Any reading above zero indicates expansion in the region's manufacturing. The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware.
It is seen as one of the first monthly indicators of the health of U.S. manufacturing, leading up to the national report by the Institute for Supply Management.
Nearly every component of the index rose from May. The reading on new orders rose to 15.2 in June from the May reading of 4.0, while the prices paid subindex surged to 17.2 from negative 14.2 in May.
On the downside, the employment index fell to 3.8 from 6.7.