The current prices paid index increased slightly, from 13.1 to 15.2. More than 68 percent of firms report no change in input prices this month, although 23 percent report increases, and 8 percent report decreases. Although most current economic indicators suggest weakness in the manufacturing sector, this month's survey shows improvement in expectations for the future. A similar improvement in outlook is evident in forecasts for new orders and shipments. The future new orders index increased from 9.4 to 25.8, and the future shipments index increased from 6.1 to 24.0.
Firms are relatively less optimistic in their plans regarding employment increases.
The future employment index increased from -6.3 in February to 0.9 in March. Like employment, average work hours are not expected to change from current levels. Summary Manufacturing has been in decline since the end of last year, and this month's Business Outlook Survey suggests overall conditions in the manufacturing sector have continued to deteriorate, although at a slower rate than last month. In particular, indexes for new orders and shipments show smaller declines this month. Firms' forecasts of future general activity improved this month.