The Philadelphia Fed's manufacturing index rose in January, to a reading of 17.0 from 9.1 in December, the Philly Fed reported on Thursday.
The consensus forecast had been for a reading of 9.7.
Any reading above zero indicates improving conditions, below indicates worsening conditions.
With regard to future activity in the sector, new orders increased to 21.3 in January, compared to prior month's reading of 13.3.
The employment index declined to 9.6 in January, compared to a prior reading of 19.1, indicating a slower pace of hiring.
Meanwhile, the prices paid index fell to 32.70 this month from 38.90.
The Philly Fed noted that the survey’s broad indicators remained positive, although they showed mixed movements.
“The survey’s future indexes indicate that respondents continue to expect growth over the next six months,” the report concluded.
