US: Philadelphia Fed Manufacturing Index improves marginally to -23.2 in March vs. -14.5 expected

• Philly Fed Manufacturing Index rises marginally to -23.3 against expectations of -14.5. 
• US Dollar remains steady after US economic numbers, ahead of ECB. 

The Federal Reserve Bank of Philadelphia's Manufacturing Business Outlook Survey's diffusion index for current general activity improved in March to -23.2 from -24.3 in February, a reading worse than -14.5 of market consensus. 

"Responses to the March Manufacturing Business Outlook Survey suggest continued declines for the region’s manufacturing sector. The survey’s indicators for general activity, new orders, and shipments were all negative, and the firms reported a decline in employment, on balance. The survey’s broad indicators for future activity continued to suggest subdued expectations for growth over the next six months." 

The indicators for new orders and shipments both declined to their lowest readings since May 2020, -25.4 and -28.2, respectively. According to the report, "on balance, the firms reported a decline in employment. The employment index decreased from 5.1 to -10.3, the index’s second negative reading since June 2020 and its lowest reading since May 2020."

"The firms continued to report overall increases in prices, but the indexes for prices paid and prices received both declined. The current prices paid index ticked down 3 points to 23.5, its lowest reading since August 2020 and near its long-run average." The current prices received index decreased to 7.9, its lowest reading since June 2020. 

Market reaction

The US Dollar remained steady after the Philly Fed and the Jobless Claims reports. The DXY is falling by 0.30%, hovering around 104.40, as traders await the European Central Bank decision.