03:49 PM EDT, 07/18/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic region jumped more than expected this month as orders and shipments rebounded, while expectations reached the highest level since July 2021, the Federal Reserve Bank of Philadelphia said Thursday.

The Manufacturing Business Outlook Survey's headline gauge for business activity climbed to 13.9 in July from 1.3 in June, according to the regional Fed. A survey compiled by Bloomberg indicated a smaller sequential increase to 2.9.

The index charting new orders rebounded to 20.7 from minus 2.2 month to month, its highest reading since March 2022. Shipments climbed to 27.8 from minus 7.2, the highest level since May 2022.

Nearly 39% of firms in the July 8-15 survey reported increases in general activity compared with 25% that reported decreases, the survey showed. "Manufacturing activity in the region expanded overall," the Fed branch wrote.

Firms on balance reported their first increase in employment since October, according to the report. The employment gauge soared nearly 18 points to 15.2 this month, the highest reading since October 2022. About 28% of firms reported employment gains, more than double the 13% that reported decreases.

The prices paid index cooled to 19.8 from 22.5 but the ratio of firms reporting increased input prices exceeded those reporting decreases. Selling prices climbed nearly 11 points to 24.2, its highest reading since January 2023.

Six months out, expectations for general activity soared to 38.7 in July from 13.8 in June, its highest reading since July 2021. The future new orders component nearly doubled to 31.3 and shipments swung positive at 31. The employee index increased to 23.8 from 19.

"Most of the survey's broad indicators for future activity rose, suggesting more widespread expectations for growth over the next six months," the Philly Fed said.