The Federal Reserve Bank of Philadelphia’s general economic index increased to 7.3 in January from 6.8 last month. Readings greater than zero indicate expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.
Economists surveyed by Bloomberg News forecast the gauge would rise to 10.3, according to the median of 56 estimates that ranged from 7 to 16.8.
Another report today showed jobless claims plunged by 50,000 to 352,000 last week, the lowest level since April 2008, according to Labor Department figures. The decline was the biggest since September 2005, when claims first surged then slumped in the aftermath of Hurricane Katrina.
The cost of living was little changed in December for a second month, the Labor Department also reported. The unchanged reading in the consumer-price index was less than the 0.1 percent gain median forecast of economists surveyed by Bloomberg. Costs excluding food and energy rose 0.1 percent last month as projected.
The Commerce Department said builders began work on fewer homes in December, reflecting a slump in multi-family unit construction. Home starts dropped 4.1 percent to a 657,000 annual rate.
