Philly Fed Index Unexpectedly Climbs To Six-Month High In March

(RTTNews) - Manufacturing activity in the Philadelphia region continued to expand in the month of March, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.

The Philly Fed said its diffusion index for current general activity rose to 18.1 in March from 16.3 in February, with a positive reading indicating growth. Economists had expected the index to pull back to 10.0.

The index increased for the third consecutive month, climbing to its highest level since hitting 19.5 last September.

The continued advance by the headline index came as the shipments index spiked to 22.2 in March from 0.3 in February, reaching its highest level since January 2025.

The number of employees index also rose to a positive 0.8 in March from a negative 1.3 in February, suggesting mostly steady employment overall.

Meanwhile, the Philly Fed said the new orders index fell to 8.6 in March from 11.7 in February, but the positive reading still indicates growth.

The report also said the prices paid index jumped to 44.7 in March from 38.9 in February, while the prices received index climbed to 21.2 in March from 16.7 in February.

Looking ahead, the Philly Fed said firms continue to expect overall growth over the next six months, although the diffusion index for future general activity slipped to 40.0 in March from 42.8 in February.

The Federal Reserve Bank of New York released a separate report on Monday showing that regional manufacturing activity was little changed in the month of March.

The New York Fed said its general business conditions index fell to a negative 0.2 in March from a positive 7.1 in February, with a negative reading indicating contraction. Economists had expected the index to decrease to 3.2.