03:19 PM EDT, 04/23/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic region recovered more than expected this month as demand improved but remained in contraction territory, the Federal Reserve Bank of Richmond said Tuesday.

The composite index came in at minus 7 in April, compared with minus 11 in March. The consensus was for a minus 8 reading, according to a survey compiled by Bloomberg.

The index charting new orders improved eight points to minus 9, while the shipments gauge recovered by four points to minus 10, the Richmond Fed said. The employment index turned negative at 2.

The annual growth rate for prices paid slowed to 2.79% in the Mid-Atlantic region this month from 3.22% in March, while the pace of prices received accelerated to 2.37% from 2.23%. Firms expect little change in these rates over the next 12 months, the Richmond Fed said.

The index for local business conditions rebounded to 6 while expectations six months out increased to 16 from 12, the report showed.

The measures for shipments and new orders six months from now jumped to 32 and 31, respectively, from 19 each in March. The forward-looking employment index rose to 3 from 2 month to month.