By Ed Frankl
A gauge measuring manufacturing activity in the Philadelphia area jumped to its highest level in almost four years, a symbol of the improved confidence among firms ahead of President-elect Donald Trump taking office again.
The Federal Reserve Bank of Philadelphia said Thursday that its index for business activity climbed to a positive 44.3 in January, both the highest reading since April 2021 and the index's largest monthly increase since the economy regained some of its footing amid the Covid-19 pandemic in June 2020.
The rise, from minus 10.9 in December, suggests activity expanded rapidly this month, in stark contrast with economists' expectations for it to contract slightly.
Nearly 51% of the firms reported increases, considerably up from 19% last month, and exceeding the 7% of companies reporting decreases. The survey's indicators for new orders and shipments also rose sharply and reached multiyear highs, it said.
The survey's broad measures for future activity rose, suggesting more widespread belief of overall growth over the next six months, the Philadelphia Fed said.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
01-16-25 0906ET
