03:27 PM EDT, 03/20/2025 (MT Newswires) -- Manufacturing growth in the US Mid-Atlantic region decelerated less than expected in March, while the outlook deteriorated to its lowest reading since January 2024, a survey from the Federal Reserve Bank of Philadelphia showed Thursday.

The Manufacturing Business Outlook Survey's headline gauge for activity dropped to 12.5 this month from 18.1 in February, marking its second consecutive decline, according to the regional Fed. A survey compiled by Bloomberg indicated a steeper decrease to 9.

"Manufacturing activity in the region expanded overall but was less widespread," the Philadelphia Fed said.

The new orders index slumped to 8.7 in March from 21.9 last month, while the shipments component sank to 2 from 26.3. The employment index jumped to 19.7 from 5.3, marking its highest reading since October 2022. The prices paid index increased to 48.3 -- its highest reading since July 2022 -- from 40.5, the data showed.

Roughly 31% of the firms surveyed reported gains in general activity this month, down from 41% in February, while 18% reported decreases, down from 23%.

Six months out, expectations for general activity slumped to 5.6 in March from 27.8 last month, marking its lowest reading since January 2024. The future new orders index plunged to 2.3 from 33.1, representing the lowest print since May 2023. The shipments component tumbled to its lowest level since June, at 11.3, down from 36.5 last month, according to the Fed branch.

"The survey's future indicators suggest less widespread expectations for growth over the next six months," the Philadelphia Fed said.

Earlier this week, New York Fed data showed that New York manufacturing activity dropped into steeper-than-expected contraction territory this month as both orders and shipments turned negative.

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