The Manufacturing Business Outlook Survey, released by the Federal Reserve Bank of Philadelphia on Thursday, revealed the expansion in the region's manufacturing activity rebounded strongly in July.

According to the survey, the diffusion index for current general activity surged from 0.3 in June to 21.8 this month.

Economists had forecast the index to increase to 5.0 last month.

A reading above 0 signals expansion, while a reading below 0 indicates contraction.

The July climb in the headline index was due to increases in the indexes for new orders (from 8.3 in June to 18.9), shipments (from 16.6 to 24.9) and employment (from 15.4 to 30). On the price front, the prices paid and prices received indexes both rose this month but remained well below their readings over the past few years.