The Philadelphia Fed’s Manufacturing Business Outlook survey came in at 12.8 for September.
The reading on the health of the manufacturing in and around Philadelphia demolished expectations, economists projected the reading to come in at 1.0.
This was a huge increase from August’s reading of 2.0, and only the second time in a year that the index has been positive for two straight months.
New orders were strong, with the sub-index jumping from -7.2 to 1.4. Employment, however, remained weak.
According to the release form the Philly Fed, forward outlook from firms remained positive.
“Firms remain optimistic about growth over the next six months and were more positive about increasing employment,” said the release.