(Kitco News) - The U.S. economy continues to send mixed signals as the Philadelphia Federal Reserve’s manufacturing survey showed solid activity in March.
The regional central bank said on Thursday that its manufacturing business outlook increased to 12.5, compared to February’s reading of 18.1. Although activity declined, the reading was better than expected, as economists had anticipated a drop to 8.8.
“Manufacturing activity in the region expanded overall but was less widespread, according to the firms responding to the March Manufacturing Business Outlook Survey,” the report said.
The better-than-expected reading comes just days after the New York Federal Reserve reported a significant drop in activity in its manufacturing sector. The regional central bank reported that its Empire State Manufacturing Survey fell to -20.0, down sharply from February’s reading of 5.7.
The latest economic data is not having much impact on gold, as the market continues to experience modest profit-taking after hitting a fresh record high above $3,050 an ounce overnight. Spot gold last traded at $3,039.50 an ounce, down 0.26% on the day.
Looking at the components of the report, the New Orders Index fell to 8.7, down from the previous reading of 21.9. At the same time, the Shipments Index dropped to 2.0, down from 26.3.
However, the labor market remains robust. The Number of Employees Index jumped to 19.7, up from February’s reading of 5.3.
Although manufacturing activity remains relatively healthy, the report noted that inflationary pressures continue to rise. The Prices Paid Index increased to 48.3, up from February’s reading of 40.5.
