The contraction in manufacturing in the US Mid-Atlantic area slowed in April as result of a less severe deterioration in new orders and labour conditions, a regional Federal Reserve survey released on Thursday showed.
The business reading from the Philadelphia Federal Reserve followed a New York Fed survey on Wednesday that showed the factory sector decline also slowed in New York state this month, offering hopes the hard-hit US manufacturing sector may be stabilising.
The Philadelphia Fed said its business activity index came in at minus 24.4 in April compared with minus 35.0 in March. A reading below zero indicates contraction in the region's manufacturing sector. The median forecast among economists polled by Reuters was minus 32.0.
Among the survey's relative bright spots, the new orders index came in at minus 24.3 compared with minus 40.7 in March, while the employee gauge stood at minus 44.9 against March's minus 52.0. The outlook among Mid-Atlantic companies also improved in April. The Philadelphia Fed's six-month conditions index bounced up to 36.2 from 14.5 in March. The April outlook figure was the highest since October 2007 prior to the start of the current recession.