The region's manufacturing sector expanded, as the general business conditions index increased to 20.4 in December from 16.7 in November, this month's Federal Reserve Bank of Philadelphia Report on Business indicates.
Economists surveyed by Thomson Reuters predicted a reading of 16.0 for the index.
"Indexes for general activity, new orders, and shipments all remained positive this month," according to the Philadelphia Fed survey.
"Indicative of improvement, the overall level of employment and average work hours among reporting firms increased this month. Overall, expectations moderated somewhat in December, although the forecast for employment improved slightly."
