Manufacturing in the Philadelphia region contracted at a slower pace in March, but many of the details of the report were weak, the Federal Reserve Bank of Philadelphia reported Thursday. The Philly Fed diffusion index rose to negative 35.0 in March from negative 41.3 in February. Readings below zero indicate contraction. The index has been negative for 15 of the past 16 months. The improvement was slightly better than expected. Economists were expecting the index to inch higher to negative 39.0. The new orders index dropped nearly ten points to negative 40.7, its lowest reading since July 1980. The survey's current inventory index declined sharply to a record low negative 55.6 from negative 24.3. The employment index fell for the sixth straight month to a record low -52.0. For the fifth straight month, firms reported declines in prices paid for inputs and the prices received for their own manufactured goods.

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