Manufacturing in the Philadelphia region expanded in March at the fastest pace in almost a year as factory employment picked up. The Federal Reserve Bank of Philadelphia’s general economic index increased to 12.5 this month, in line with projections, from 10.2 in February. Economists forecast the gauge would rise to 12, according to the median estimate in a Bloomberg News survey. Readings greater than zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.
Manufacturers are positioned to keep expanding as companies rebuild stockpiles and invest in new equipment. What’s more, labor market gains may help bolster consumer spending, the biggest part of the economy, and further propel the industry.
“Manufacturing has been leading the economy in recent quarters,” Stuart Hoffman, chief economist at PNC Financial Services Group Inc., said before the report. “Exports bear watching given the troubles in Europe.”
Estimates from the 59 economists surveyed for the Philadelphia Fed index ranged from 6 to 18.5.
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