Philly Fed factory activity rises in May

NEW YORK, May 17 (Reuters) - Factory activity in the U.S. Mid-Atlantic region improved in May after nearly flat readings in recent months, a survey showed on Thursday.

The Philadelphia Federal Reserve Bank said its business activity index was at 4.2 in May, up from 0.2 in April and beating Wall Street forecasts for a 3.O reading.

Any reading above zero indicates growth in the region's manufacturing sector. The index was above zero for the fifth straight month.

The new orders index, a gauge of future growth, rose to 8.7 in May from 2.8 in April.

The survey covers factories in a region encompassing eastern Pennsylvania, southern New Jersey and Delaware and is looked at closely as one of the first indicators of the health of the U.S. manufacturing sector.