Philly Fed index drops a little more than expected in March

Manufacturing conditions in the Philadelphia region deteriorated a little more than expected in March, according to a survey out on Thursday.

The Philadelphia Fed's diffusion index for current activity dropped to 22.3 from 25.8 in February, missing expectations for a smaller decline to 23.0.

Meanwhile, the new orders index increased to 35.7 from 24.5, while the prices paid index fell to 42.6 but remains near last month's reading of 45.0, which was the highest since 2011.

The current shipments index jumped to 32.4 this month from 15.5 in February and the inventories index rallied to 16.5 from -0.9.

The diffusion index for future general activity increased to 47.9 in March from 41.2 the month before, with nearly 58% of firms expecting increases in activity over the next six months, while 10% expect declines.