U.S. regional manufacturing improves in March: survey

HOUSTON, march 21 (Xinhua) -- U.S. Federal Reserve Bank of Philadelphia on Thursday reported improvement in regional manufacturing conditions this month based on the observation from the march manufacturing Business Outlook Survey.

The survey, conducted by the Federal Reserve Bank of Philadelphia, which is responsible for the Third District covering eastern Pennsylvania, southern New Jersey, and Delaware, suggested that the region's manufacturing sector grew in march.

The index for current manufacturing activity in the region increased from a reading of minus 4.1 in February to 13.7 this month.

This month, both the new orders and shipments indexes increased. The current new orders index grew from a reading of minus 2.4 in February to 1.9 in march. The current shipments index increased by 25 points to 20.0.

The current employment index, however, decreased from a reading of 14.5 in February to 9.6 this month. Nearly 20 percent of the responding firms reported increases in employment, while 10 percent of the firms reported decreases.

Price pressures continued to moderate. The prices paid index decreased 2 points to 19.7, declining for the eighth consecutive month and its lowest reading since July 2017. What's more, nearly 24 percent of the firms reported higher input prices this month, down from 28 percent last month.

The diffusion index for future general activity declined nearly 10 points to 21.8 this month, its lowest reading since February 2016. Nearly 42 percent of the firms expected increases in activity over the next six months, while 20 percent expected declines.

The future new orders index also decreased by 10 points, and the future shipments index decreased by 19 points. The future employment index edged up 1 point to 24.9.

About 38 percent of the firms were expecting to increase employment over the next six months, higher than the percentage of the firms expecting a decrease, which was 13 percent.

The manufacturing Business Outlook Survey is a monthly survey of manufacturers in the Third Federal Reserve District. Participants indicate the direction of change in overall business activity and in the various measures of activity at their plants.

Federal Reserve Bank of Philadelphia is one of the 12 regional Federal Reserve Banks that, together with the Board of Governors based in Washington, D.C., make up the Federal Reserve System.