03:19 PM EDT, 10/22/2024 (MT Newswires) -- Manufacturing activity in the US Mid-Atlantic region improved more than expected in October, but remained in contraction territory, data from the Federal Reserve Bank of Richmond showed Tuesday.

The composite index rose to minus 14 this month from minus 21 in September. The consensus was for a smaller improvement to a minus 17 print in a survey compiled by Bloomberg. The latest data showed that Fifth district manufacturing activity remained "slow," the Fed branch said.

The gauge for shipments rose to minus 8 in October from minus 18 last month, while new orders increased to minus 17 from minus 23. The gauge measuring the number of employees improved to minus 17 from minus 22, the regional Fed's data showed.

"The local business conditions index increased modestly, but remained in negative territory," the Richmond Fed said. The average growth rate of prices paid fell this month, while the prices received rate rose, according to the report.

Six months out, the index for new orders jumped to 35 in October from 7 last month, while the metric charting future shipments rose to 22 from 15. The forward-looking indicator of local business conditions swung to 21 from minus 6, while the future employment index reached 4, compared with last month's minus 12 reading, according to the report.

"Firms expected little change in price growth over the next 12 months," the Fed branch said.

New York Fed data released earlier in the month showed that New York manufacturing activity fell more than projected in October in a return to contraction territory, while a separate report from the Philadelphia Fed showed that manufacturing activity in the Mid-Atlantic region ramped up at a stronger-than-expected pace this month.