03:59 PM EDT, 03/21/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic region dipped this month, the Federal Reserve Bank of Philadelphia said Thursday, but remained unexpectedly positive, while expectations improved.

The Manufacturing Business Outlook Survey's headline gauge for business activity moved down to 3.2 in March from 5.2 in February, according to the regional Fed. A survey compiled by Bloomberg indicated a larger decline to negative 2.5. This was the index's second straight positive reading and only its fifth positive one since May 2022.

Nearly 24% of firms in the March 11 to March 18 survey reported increases in general activity, compared with the 21% that reported decreases. The data show manufacturing activity in the region continued to expand overall, the Fed branch wrote.

The gauge for new orders swung positive for the first time since October, to 5.4 this month from negative 5.2 the month prior. The shipments index expanded to 11.4 from 10.7 month to month, its highest reading since August 2022.

The gauge for number of employees eased slightly but remained in contraction territory at negative 9.6, suggesting a decline in overall employment levels, the Philly Fed said. The average workweek fell marginally into the negatives from 1.4 in February.

"Most firms reported labor supply as at least a slight constraint to capacity utilization in the current quarter, and the share of firms reporting it as a moderate or significant constraint edged up from when this question was asked in December," the regional Fed wrote. The employment index has registered negative in 11 of the past 13 months, the report showed.

The prices paid index dropped 13 points to 3.7 in March, the lowest reading since May 2020. Prices received shifted downward to 4.6 from 6.2 month to month, the report showed.

Six months out, expectations for future general activity climbed sharply to 38.6 this month from 7.2 in February, the highest reading since July 2021. Half of firms expect activity to increase over this time versus 11% that anticipate a decline. The index charting expectations for new orders in the Mid-Atlantic region rocketed 26 points to 49.9, and future shipments gained 17 points to 43.6.