A report released by the Federal Reserve Bank of Philadelphia on Tuesday showed a downturn in regional non-manufacturing activity in the month of March.

The Philly Fed said its diffusion index for current general activity at the firm level fell to a negative 2.3 in March from a positive 0.8 in February.

The index turned negative for the first time since last October, with a negative reading indicating a decline in non-manufacturing activity in the region.

While the new orders index crept up to a negative 3.9 in March from a negative 4.7 in February, the sales or revenues index slumped to 0.2 in March from 7.7 in February.

The report also said the full-time employment index slid to 3.5 in March from 9.1 in February, hitting its lowest level since last June

The part-time employment index also fell to a negative 6.9 in March from a negative 4.0 in February, hitting its lowest level since December 2020.

Meanwhile, the Philly Fed said the future general activity indexes continued to suggest firms expect growth over the next six months.

The diffusion index for future general activity at the firm level inched up 21.7 in March from 21.2 in February.