By Greg Robb
WASHINGTON (MarketWatch) - Manufacturing activity in the Philadelphia region rebounded to show modest improvement in October, the Federal Reserve Bank of Philadelphia reported Thursday. The Philly Fed diffusion index rose to 5.7 in October from negative 1.9 in September. This is the first positive reading after five straight monthly reading below zero, indicating contraction. The increase in the index was larger than expected. Economists were looking for the index to improve to zero in October. However, details of the report were mixed. The key new orders index slipped into negative territory. There was a sizable gain in shipments. The index for number of employees fell to negative 10.7 from negative 7.3.
