Investing.com - The Philadelphia Fed's manufacturing index unexpectedly rose in April, to a reading of 23.2 from 22.3 in March, the Philly Fed reported on Thursday.
The consensus forecast had been for a reading of 20.8.
Any reading above zero indicates improving conditions, below indicates worsening conditions.
With regard to future activity in the sector, new orders fell to 18.4 in April, compared to last month's reading of 35.7.
However, the employment index advanced to 27.1 in April, compared to a prior reading of 25.6, indicating a faster pace of hiring.
The prices paid index rose to 56.40 this month, from the 42.60.
“Responses to the April Manufacturing Business Outlook Survey suggest continued growth for the region’s manufacturing sector,” the Philadelphia Fed noted in the release, pointing out that the indexes for general activity, new orders, shipments, and employment all indicated continued expansion this month.
“In responses to special questions, over half of the firms indicated plans to increase capital spending this year,” the report said.
“Looking ahead six months, the firms continued to be optimistic about the outlook for manufacturing activity,” the survey concluded.