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20 (Bloomberg) -- Manufacturing in the Philadelphia region unexpectedly expanded in August for the first time in almost a year as factories help pull the economy out of its worst recession in seven decades. The Federal Reserve Bank of Philadelphia’s general economic index climbed to 4. 2 from minus 7. 5 in July, the bank said today. Positive readings signal an expansion. The leading economic indicators rose in July for a fourth consecutive month, the Conference Board reported separately. Factories are stepping up production after cutting inventories at a record pace, and the government’s cash-for- clunkers plan has prompted output gains at General Motors Co. and Ford Motor Co. that may ripple through the economy. An unexpected increase in jobless claims reported today indicates a weak labor market may hold back a rebound.