03:25 PM EDT, 04/25/2024 (MT Newswires) -- Manufacturing activity in the US Midwest region slid further into contraction territory in April amid declines in production and shipments, according to data released Thursday by the Federal Reserve Bank of Kansas City.

The composite manufacturing index dropped to negative 8 this month from negative 7 in March. The consensus was for a negative 5 print in a survey compiled by Bloomberg.

"Regional factory conditions declined again in April, marking its 19th consecutive month of flat or falling activity," Kansas City Fed Senior Vice President Chad Wilkerson said. "Firms decreased capital expenditures slightly from this time last year as they continue to face margin compression."

The production index declined to negative 13 sequentially this month from negative 9, while volume of shipments sank to negative 11 from negative 5. New orders improved to negative 6 from negative 17, while the employee index turned negative at 2, the Kansas City Fed said.

Activity fell "somewhat" in April for both durable and nondurable goods, led by food, metals, electrical equipment, and paper manufacturing, according to the report.

Six months out, the seasonally adjusted composite index rose to 2 this month from 1 in March. The future production index fell to 16 from 18, while the shipments component slid to 5 from 15. The future new orders gauge declined to 1 from 4, according to the Fed branch's data.

On Tuesday, Richmond Fed data showed that manufacturing activity in the US Mid-Atlantic region recovered more than expected in April as demand improved but remained in contraction territory.