(Reuters) – A gauge of manufacturing activity in the U.S. Mid-Atlantic region shot up by the most in about four-and-a-half years in January, with new orders and shipments both surging, a potential indication that the factory sector’s long slump may be ending.
The Federal Reserve Bank of Philadelphia said on Thursday that its monthly manufacturing index rose to 44.3, its highest since April 2021, from a revised minus 10.9 in December. The net increase was the largest since June 2020 after factories began reopening from the initial wave of COVID-19 shutdowns and was the second largest increase on record.
The result far outstripped the median forecast among economists polled by Reuters, which was for a reading of minus 5.0. Negative readings indicate a contraction in activity.
The report’s new orders index rose to 42.9, its highest since November 2021, while the shipments index climbed to 41.0, its highest since October 2020. Employment levels also rose to a six-month high.
The U.S. manufacturing sector has been struggling for the better part of three years after the Federal Reserve be
