The March Nonmanufacturing Business Outlook Survey indicated the business activity in some eastern U.S. states continued to grow, the Federal Reserve Bank of Philadelphia reported on Tuesday.

Responses to the survey, conducted by the Federal Reserve Bank of Philadelphia which is responsible for the Third District covering eastern Pennsylvania, southern New Jersey, and Delaware, suggested that the region's nonmanufacturing sector continued to expand in March.

The indicators for firm-level general activity and sales/revenues remained positive but fell slightly from last month's readings, while the indicator for new orders rose to a high level.

The survey's indexes for future activity suggested that firms expected growth to continue over the next six months.

The survey's labor market indicators improved in March. The full-time employment index rose 5 points to 22.6 this month, building on 18 points rise in February.

The respondents continued to report overall increases in prices for inputs and for their own goods and services.

The indexes for capital spending showed further improvement in March. The index for equipment and software spending rose 10 points to 35.1, exceeding its historical average of 22.7 for the third consecutive month.

The respondents to this month's survey remained optimistic about activity over the next six months. More than 58 percent of the firms anticipated higher activity over the next six months, compared with only 4 percent that anticipated a decline.

The future regional activity index edged down 1 point to 49.7, which is above its historical average of 49.5.

The Nonmanufacturing Business Outlook Survey is a monthly survey of nonmanufacturers in the Third Federal Reserve District. Participants indicate the direction of change in overall business activity.

The Federal Reserve Bank of Philadelphia is one of the 12 regional Reserve Banks that, together with the Board of Governors in Washington D.C., make up the Federal Reserve System.