The Philadelphia Federal Reserve reports that the general business activity metric of its Philly Fed manufacturing survey increased to a reading of +12.5 in June. This is a significant improvement from April’s reading of -5.2 and moves the index to indicating economic expansion (reading >0) in the manufacturing sector. Additionally, this is the highest the index has been since March of 2012.
June’s reading was composed of 33.9% of survey respondents reporting that business conditions improved during the month, while 21.5% reported that conditions had worsened.
The Philly Fed is the second Federal Reserve bank to report its manufacturing survey results for June. Currently, 3 of the 5 regional manufacturing surveys conducted by Fed banks suggest economic expansion in the manufacturing sector.