02:40 PM EDT, 09/19/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic region rebounded more than expected this month as a jump in employment helped counter declines in orders and shipments, the Federal Reserve Bank of Philadelphia said Thursday.

The Manufacturing Business Outlook Survey's headline gauge for business activity swung to 1.7 in September from minus 7 in August, according to the regional Fed. A survey compiled by Bloomberg indicated a sequential improvement to a flat reading.

Nearly 22% of firms in the Sept. 9-16 survey reported increases in general activity while 20% reported decreases, with 51% reporting no change, the survey showed. "Manufacturing activity in the region was mixed overall," the Fed branch said.

The employment gauge jumped to 10.7 this month from minus 5.7 in August, marking the component's second positive reading in the last three months following mostly negative readings since March 2023.

About 89% of firms reported no change in employment levels, which the Philly Fed said is the highest share of steady employment since December 1978. Some 11% reported job gains.

The metric charting new orders swung into negative territory at minus 1.5 in September from 14.6 in August while shipments tumbled nearly 23 points to minus 14.3, its lowest reading since March 2023.

Firms continued to report overall increases in prices, the Fed's report showed. The prices paid index heated up by 10 points to 34 in September, its highest reading since December 2022. About 34% of firms reported higher input prices while none reported declines. Selling prices advanced to 24.6 from 13.7 on a sequential basis.

Both raw material and selling prices are expected to move higher over the next six months, according to the survey. Expectations for general activity ticked up to 15.8 in September from August's reading of 15.4. The future new orders component more than doubled at 21.8 while shipments advanced by 17 points. The forward-looking employee index increased to 19.1 from 7.4.