Bloomberg News/Landov
The numbers: The Philadelphia Fed said Thursday its gauge of business activity in its region rebounded strongly in July after hitting its lowest level in four months in June.
The regional Fed bank’s index rose to 21.8 in July from 0.3 in June. The July level is the highest in a year. The index was 16.6 in May.
Any reading above zero indicates improving conditions. Economists polled by Econoday expected a 4.5 reading.
What happened: The barometer on new orders increased 11 points to 18.9 while the shipments index rose 8 points to 24.9.
The measure on six-month business outlook rose to 38 from 21.4.
Big picture: The surprising gain offsets some of the gloom surrounding manufacturing. On Monday, a similar survey conducted by the New York Fed saw sentiment rebound partially in July.
Manufacturing has hit a rough patch this year, with the impact of trade tensions and a strong dollar holding down activity. Industrial production has declined for two straight quarters, according to figures released Tuesday.
Market reaction: Trade worries were weighing on stocks with the Dow Jones Industrial DJIA, -0.42% xpected to open lower, even after the Philadelphia data.
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