Indicators reflecting the firms' forecasts over the next six months showed notable improvement. The increase, however, follows January's near 33-point drop in the index and strongly suggests overall declines in the manufacturing sector. Indicators for current new orders and shipments also reflect a sector experiencing relatively widespread declines. Continued negative readings for unfilled orders and delivery times indicate further weakness in the sector. In recent months employment indicators have mirrored the pattern of current indicators.
Continued weakness is evident in responses regarding the current average workweek.
Price Indicators Change Little Upward pressures on input prices continue but are little changed from the previous survey. The current diffusion index for prices paid increased slightly from 12.9 to 13.1 this month. The index has been trending down over the past year, suggesting a trend of moderating pressures on input prices. This month 22 percent of the manufacturers surveyed reported increases in prices for purchased inputs, and 9 percent reported decreases. Prices of the manufacturers' produced goods also showed little difference from the previous survey.