Philadelphia Fed Index Improves, But Still Negative

Manufacturing activity in the Federal Reserve Bank of Philadelphia’s region “continued to contract” in March, as the general business conditions index increased to negative 35.0 from negative 41.3 in February, this month’s Report on Business indicates.

Economists surveyed by IFR Markets predicted a reading of negative 38.0 for the index.

“Indexes for general activity, new orders, shipments, and employment remained significantly negative,” according to the Fed. “Employment losses were substantial again this month, with over half of the surveyed firms reporting declines. Firms continued to report declines in input prices and prices for their own manufactured goods.

“Most of the indicators of future activity suggest that the region’s manufacturing executives expect declines to bottom out over the next six months, but the firms’ employment forecasts suggest continued weakness.”

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