The Federal Reserve Bank of Philadelphia already showed an uptick in manufacturing for March earlier this week. Now the so-called Philly Fed is showing that non-manufacturing business activity rose in March as well.
Firms responding to this month’s Nonmanufacturing Business Outlook Survey also showed that indexes for current general activity at the firm level and employment fell from last month, but both indicators remained in positive territory. Sales and new orders also improved, with most firms reporting steady prices overall.
One positive here is in the outlook. Survey respondents remained optimistic about business activity at their own firms and in the region over the next six months.
Key index readings and data points were seen as follows for general activity, sales, orders and employment:
- The diffusion index for current activity at the firm level was positive but fell from 25.6 in February to 17.5 in March, its lowest level since July 2015. The historical average for this index is 29.5.
- Some 41% of respondents reported an increase in firm-level activity in March, down from 46% in February.
- The percentage of firms reporting a decrease in firm-level activity rose by three points to 23.
- The diffusion index for current general activity in the region rose by 10 points to 13.9. The historical average for this index is 23.5.
- The percentage of firms reporting an increase in regional activity rose from 29% in February to 33% in March, and the percentage of firms reporting a decrease fell from 25% to 19%.
- The sales/revenues index rose by 10 points to 19.0 in March, suggesting continued demand for the goods and services produced by the responding firms.
- A smaller percentage of respondents reported decreases in sales this month (25%) compared with February (31%).
- The percentage of respondents who reported an increase in sales rose from 40% in February to 44% in March.
- The new orders index increased two points to 17.0.
- The percentage of firms reporting no change in new orders fell six points.
- The percentage of firms reporting a decline in new orders rose one point.
- The unfilled orders index rose three points to 5.7.
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