Region's manufacturers say business is better

Philadelphia-area manufacturers say business seems to be improving as their activity expanded this month to its highest level since October, according to the monthly business-outlook survey by the Federal Reserve Bank of Philadelphia.

The survey's general-activity index tracking about 100 Philadelphia-area manufacturers rose to 10.2 in February from 7.3 in January. A reading below zero means manufacturers are shrinking and potentially laying off employees, and a reading above zero means they are expanding and possibly hiring.

The survey is considered a national bellwether of manufacturing activity because it is among the first indicators to be released for the month.

The Philadelphia survey was the latest example of a resurgence in the nation's manufacturing sector after weakness resulting from the European financial crisis.

New York-area manufacturing grew in February at the fastest pace since June 2010, according to the Federal Reserve Bank of New York's Empire State Index, Bloomberg News reported.

Philadelphia-area manufacturers indicated they were boosting the average work hours for employees but were not hiring additional employees, according to responses to the survey.

In another positive indicator, about 36 percent of the respondents to the survey said they would boost capital expenditures in 2012, while 23 percent said they would cut capital expenditures. The balance of the respondents estimated that capital outlays would be the same this year as last year.

Contact staff writer Bob Fernandez at 215-854-5897 or bob.fernandez@phillynews.com.