Mid-Atlantic Factories Surge in April
By Victoria Thieberger
NEW YORK (Reuters) - Manufacturing in the U.S. Mid-Atlantic region jumped in April as new orders picked up, although hiring remained muted, a report showed on Thursday.
The Philadelphia Federal Reserve (news - web sites) Bank said its gauge of regional industry surged to 32.5 in April from 24.2 in March, well above economists' forecasts of an increase to 26.8 and the best level since January.
It was the 11th consecutive reading above zero, the index's threshold that separates growth from contraction.
"Very encouraging numbers for the U.S. factory sector," said Westpac Banking Corp. senior currency strategist Richard Franulovich.
"It just adds to the torrent of data that shows that the U.S. economy is at a healthy clip going into the second quarter," he said.
The survey's employment component dipped to 12.2 from 12.3, while new orders, a sign of future growth, increased to 26.1 from 21.9.
Treasuries showed little reaction to the report, with the strong headline figure offset by a slight dip in the employment component.
Factory activity around the country boomed at 20-year highs at the start of the year, but hiring has yet to improve after three years of production job losses.
The jump in April's overall index more than retraced a dip in March and showed the recent slower growth was only a pause.
The index's prices measure eased to 51.9 from 53.4, after several months when producers reported inexorably higher costs. An unexpected jump in consumer prices reported on Wednesday has fueled worries that inflation may be on the rise, but the dip in the Philadelphia Fed inflation gauge might help ease some of those concerns.
The report is one of the first indicators of U.S. manufacturing each month and is closely watched for hints on the overall health of factories, which account for about one-sixth of the economy.
The Philadelphia Fed is one of 12 regional central banks and serves Delaware, eastern Pennsylvania and New Jersey.
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Mish, Sorry to hear about your wife's job loss. Best of luck.
TH |
