01:35 PM EDT, 06/25/2024 (MT Newswires) -- Manufacturing activity in the US Mid-Atlantic region contracted more than expected in June amid steep declines in shipments and new orders, according to data released Tuesday by the Federal Reserve Bank of Richmond.

The composite index fell to minus 10 this month from zero in May. The consensus was for a minus 3 print in a survey compiled by Bloomberg.

The gauge for shipments swung to minus 9 from 13, while new orders dropped to minus 17 from minus 6, the Richmond Fed said. The employment index improved to minus 2 from minus 6.

"Although the vendor lead time index increased, on balance, firms continued to report declining backlogs and vendor lead times in June, as those indexes both remained negative," the Fed branch said, adding that firms project price growth to moderate slightly over the next year.

Six months out, the index for shipments rose to 26 in June from 25 last month, while the new orders index dropped to 22 from 25. Both gauges remained "solidly in positive territory," indicating firms continued to expect improvements in these areas, the regional Fed said. The forward-looking employment index increased to 3 from zero, the data showed.

Separately, the Chicago Fed said its national activity index swung to 0.18 in May from minus 0.26 the previous month. The consensus was for a minus 0.25 reading in a survey compiled by Bloomberg. Three of the four broad indicator categories used to construct the index rose sequentially, and two categories made positive contributions last month, according to the report.

Data from the Dallas Fed showed Monday that Texas' manufacturing contraction improved slightly less than expected in June, while the six-month outlook rose "notably."

Last week, the New York Fed said New York manufacturing activity improved more than expected this month but remained in contraction territory, while the outlook for business activity six months out reached a more than two-year high.