04:00 PM EST, 02/27/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic region improved into shallower contraction territory than anticipated this month as orders and employment rose notably, the Federal Reserve Bank of Richmond said Tuesday.

The composite index came in at negative 5 in February from negative 15 in January. The consensus was for an improvement to negative 9, according to a survey compiled by Bloomberg. The latest data showed that "fifth district manufacturing activity was flat," the regional Fed said.

The index charting new orders shifted to negative 5 from negative 16, while the employment index swung positive to 7 from negative 15. Shipments were unmoved at negative 15, which the Fed said was "solidly negative."

The growth rate for prices paid slowed to 3.52% from 4.19% month to month in the Mid-Atlantic region. The pace of prices received was nearly unchanged at 2.85%.

The index for local business conditions rallied positive to 1 from negative 8 month to month in an indication that firms "were slightly more optimistic," according to the Fed. Six months out, the component edged up to three in February from 0 in January.

The measure for shipments six months from now climbed to 22 from 10 on a sequential basis, and future new orders ticked up to 22 from 20. Mid-Atlantic firms expect growth rates for both price measures to moderate over the next 12 months, the survey showed.

Earlier this month, the Federal Reserve Bank of New York reported a sharp improvement in its manufacturing contraction, while the Philadelphia Fed's report showed the Mid-Atlantic's contraction improved less than expected.