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The numbers: The Philadelphia Fed said Thursday its gauge of regional business activity rose to 27.4 in March from 16 in the prior month.
Economists polled by the Wall Street Journal expected a 15 reading.
Any reading above zero indicates improving conditions.
Key details: The barometer on new orders increased to 25.8 from 14.2 in the prior month. The shipments index rose to 30.2 from 13.4. Both price gauges increased in the month.
Big picture: The data was much stronger than expected. Analysts had tempered their optimism about manufacturing after a similar Empire State survey released Tuesday by the New York Fed showed manufacturing activity declined, with the business conditions index falling 14.9 points to negative 11.8 in March. The decline was blamed on the spike in oil prices following the invasion of Ukraine by Russia.
Manufacturing has been a bright spot during the pandemic. In February, the national ISM manufacturing index rose to 58.6 from 57.6 in the prior month. It has been in positive territory for 21 straight months.
Market reaction: U.S. stocks
DJIA,
SPX,
were set to open lower Thursday in the wake of the Fed’s projection of an aggressive series of rate hikes.
