Philadelphia Fed manufacturing index rises

Manufacturing growth in the Philadelphia area accelerated in August as companies rebuilt inventories and stepped up production to meet demand, a Federal Reserve report showed. The Fed Bank of Philadelphia's general economic index for August rose to 17.5 from 9.6 last month. A number greater than zero means a higher percentage of the area's factories surveyed reported business was improving than deteriorating. Manufacturing is picking up as companies in the region, such as container maker Constar International Inc., report increased customer orders. Higher demand and rebuilding of inventories that were depleted during the second quarter may help support production this quarter, economists said. "Very slowly, the manufacturing sector is recovering as businesses start spending again on inventories and capital investment," Michael Gregory, a senior economist at BMO Nesbitt Burns in Toronto, said before the report. Economists expected the index to rise to 14, according to the median of 44 forecasts in a Bloomberg News survey. Estimates ranged from 7 to 22.