Manufacturing in the Philadelphia region expanded in March at the fastest pace so far this year as factories lead the U.S. economic recovery.The Federal Reserve Bank of Philadelphia’s general economic index rose to 18.9, in line with the median forecast of economists surveyed by Bloomberg News and the highest level since December, from 17.6 in February. Readings greater than zero signal growth.
Factories keep adding workers and increasing production to replenish depleted inventories and meet rising global demand. Gains in manufacturing may be the spark that ignites a broader economic expansion, leading to increases in payrolls and consumer spending.
“The manufacturing sector has been the one bright spot for the economy in recent months,” said Scott Brown, chief economist at Raymond James Associates Inc. in St. Petersburg, Florida. “Clearly a sustainable recovery will require an improvement in the jobs. We’re right on the cusp of new hiring.”
Let's go to the data.
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The main point to take from this report is the index has remained positive for seven consecutive months.
