Investing.com - A closely-watched survey of U.S. manufacturing pointed to a rebound in the coming months Thursday, as the pace of new orders picked up and input prices weakened.
The Philadelphia Federal Reserve said its manufacturing index rose in March, to a reading of 13.7 from -4.1 in February, which had been its lowest reading in two and a half years.
The consensus forecast had been for a reading of 4.6. Any reading above zero indicates improving conditions and below indicates worsening conditions.
“Most of the survey’s indexes for future conditions continued to moderate, but the firms remained generally optimistic about growth over the next six months,” the report noted.
With regard to future activity in the sector, new orders advanced to 1.9 in March, while the employment index was at 9.6 from last month’s reading of 14.5, indicating a slower pace of hiring.
Meanwhile, the prices paid index fell to 19.7 this month from 21.8.
The news comes a day after the Federal Reserve effectively abandoned its plan to raise interest rates this year after economic data showed a broad slowdown in the economy in the first two months.