According to the Federal Reserve Bank of Philadelphia, the current general activity index for manufacturing jumped from a seven-month low of 7.0 in August to 1.7 last month, surpassing the -1.0 reading expected by economists.

However, while 22% of firms reported increases in general activity, 20% still reported decreases while 51% reported no change.

Sub-indices for new orders and shipments both turned negative, with new orders falling 16 points to -1.5 and shipments dropping 23 points to an 18-month low of -14.3.

On the upside, manufacturers in the region on balance reported increases in employment, with the sub-index for jobs rising from -5.7 to 10.7. Still, 89% reported no change in employment levels – the highest share reporting steady employment since December 1978.

Looking ahead, 39% of firms expect activity to increase over the next six months, compared with 23% who predict a decline.