Philadelphia-area manufacturers responding to a survey from the Federal Reserve Bank of Philadelphia unexpectedly reported slight increases in business activity in the month of March.
A report released by the Philly Fed on Thursday showed that its diffusion index of current activity climbed to a positive 2.0 in March from a negative 12.5 in February, with a positive reading indicating an increase in regional manufacturing activity.
The jump into positive territory came as a surprise to economists, who had been expecting the index to climb to a negative 1.5.
The report also showed an improvement in demand for manufactured goods, with the new orders index rising to a positive 0.5 in March from a negative 7.8 in February.
The shipments index also inched up to 3.5 in March from 2.4 in February, indicating a modest acceleration in the pace of growth.
Employment at Philadelphia-area manufacturers also saw slightly faster growth, as the number of employees index crept up 2.7 in March from 0.9 in the previous month.
On the inflation front, the prices paid index dipped to 8.5 in March from 8.9 in February, while the prices received index edged down to a negative 0.8 percent from a negative 0.5.
The Philly Fed also said the future indicators suggest that firms expect growth in business over the next six months.
The future general activity index inched up to 32.1 in March from 32.5 in February, rising for the fourth consecutive month.
Last Friday, the New York Federal Reserve released a report showing that conditions for New York manufacturers continued to improve in March, although the pace of improvement unexpectedly showed a modest slowdown compared to the previous month.
The New York Fed said its general business conditions index edged down to 9.2 in March from 10.0 in February, while economists had expected the index to come in unchanged.
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