A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity expanded overall in the month of February.
The Philly Fed said its diffusion index for current general activity climbed to 16.3 in February from 12.6 in January, with a positive reading indicating growth. Economists had expected the index to decrease to 7.7.
With the unexpected increase, the Philly Fed index reached its highest level since hitting 19.5 in September 2025.
The unexpected advance by the headline index came as the new orders index remained somewhat elevated, although it fell to 11.7 in February from 14.4 in January.
The shipments index also slumped to 0.3 in February from 9.5 in January, while number of employees tumbled to a negative 1.3 in February from a positive 9.7 in January.
The report also said the prices paid index slumped to 38.9 in February from 46.9 in January, hitting its lowest level since January 2025.
The prices receive index also plunged to 16.7 in February from 27.8 in January, dropping to its lowest reading since December 2024.
Looking ahead, the Philly Fed said expectations for growth over the next six months were more widespread, with the diffusion index for future general activity spiking to 42.8 in February from 25.5 in January.
The Federal Reserve Bank of New York released a separate report on Tuesday showing a modest increase in regional manufacturing activity in the month of February.
The New York Fed said its general business conditions index edged down to 7.1 in February from 7.7 in January, but a positive reading still indicates growth. Economists had expected the index to dip to 6.0.
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