By Greg Robb
WASHINGTON (MarketWatch) -The index of manufacturing activity in the Philadelphia region returned to positive territory for the first time in three months in October, the Federal Reserve Bank of Philadelphia reported Thursday. The Philly Fed diffusion index rose to a positive 1.0 in October from a negative 0.7 in September. The increase was not as strong as expected. Economists polled by MarketWatch were expecting the index to rise to 1.4. The index is still well below levels seen earlier this year. The index was 21.4 as recently as May. Indexes for new orders and shipments continued to indicate weakness. The new orders index remained negative for the fourth consecutive month. Firms continue to report declines in inventories and unfilled orders. The index for employment was slightly positive.
