03:55 PM EDT, 07/23/2024 (MT Newswires) -- Manufacturing activity in the US Mid-Atlantic region unexpectedly slid into deeper contraction territory this month as shipments and orders declined further, according to data released Tuesday by the Federal Reserve Bank of Richmond.

The composite index fell to minus 17 in July from minus 10 in June. The consensus was for an improvement to a minus 6 print in a survey compiled by Bloomberg. "Fifth District manufacturing activity worsened in July," the Richmond Fed wrote.

The gauge for shipments dropped to minus 21 from minus 9 sequentially while new orders declined to minus 23 from minus 16, the Richmond Fed said. The metric charting local business conditions slid to minus 21 from minus 13.

The employment index dipped to minus 5 from minus 2 while wages eased to 15 from 21 month to month.

The growth rate for prices paid for raw materials cooled to 3% this month from 3.58% in June while the rate for selling prices decreased about a percentage point to 1.31%.

Six months out, the index for shipments ticked up a point to 22 in July while new orders declined to 20 from the previous month's 23. "The future indexes for shipments and new orders remained solidly in positive territory, suggesting that firms continued to expect improvements in these areas over the next six months," the regional Fed said.

The forward-looking employment index dipped two points to 3. Firms indicated that they expect the growth rate of prices paid for raw materials to cool slightly and selling prices to decelerate.

Last week, the New York Fed said manufacturing activity in its region contracted less than expected this month as orders largely held steady, while the Philadelphia Fed's data showed activity in its Mid-Atlantic region jumped more than expected with orders and shipments rebounding.