Philly Fed manufacturing index back in positive territory

Manufacturing conditions in the Philadelphia region improved more than expected in June, according to the latest report form the Federal Reserve Bank of Philadelphia.

The diffusion index for current activity jumped back into expansion territory after two consecutive readings, rising to 4.7 from -1.8 in May and surpassing economists’ expectations of 1.1.

However, the current new orders and shipments indexes remained slightly negative, slipping one and two points, respectively.

The Federal Reserve Bank of Philadelphia pointed out that while the indicator for general activity was positive, other broad indicators continued to reflect general weakness in business conditions.

“The indicators for both employment and work hours remained negative. Forecasts of future activity weakened from last month but continued to suggest that manufacturers expect growth over the next six months,” it said.