03:56 PM EDT, 05/15/2025 (MT Newswires) -- New York manufacturing contraction worsened in May as firms remained pessimistic regarding the outlook, while the downturn in the US Mid-Atlantic region improved, two separate surveys showed Thursday.

The Empire State Manufacturing Survey's general business conditions index deteriorated to minus 9.2 this month from minus 8.1 in April, a survey by the Federal Reserve Bank of New York showed. The consensus was for a minus 8 reading in a survey compiled by Bloomberg.

"Business activity continued to decline modestly in New York State in May," New York Fed Economic Research Adviser Richard Deitz said in a statement. "Supply availability worsened."

The gauge for new orders swung to 7 in May from minus 8.8 last month, while the shipments measure improved to 3.5 from minus 2.9. The prices paid index hit its highest reading in more than two years at 59, while selling price gains slowed, the Fed branch said.

Six months out, the index for business activity moved to minus 2 this month from minus 7.4 in April, indicating that firms continue to expect conditions to worsen. The future new order and shipment indexes also improved, but remained in contraction territory. "Input price increases are expected to pick up, and supply availability is expected to worsen significantly," the New York Fed said.

Separately, a survey by the Philadelphia Fed showed that the headline gauge for activity in the Mid-Atlantic improved to minus 4 in May from minus 26.4 last month, indicating "weak" activity. Wall Street was looking for an improvement to minus 11.

New orders rose to 7.5 from minus 34.2 sequentially, while the shipments measure fell to minus 13 from minus 9.1. The prices paid and received indexes rose to their highest readings since June 2022, according to the Philly Fed.

Six months out, expectations for general activity in the region improved sequentially to 47.2 this month from 6.9. The future new order and the shipment components also rose markedly, the survey showed.

"Firms continued to expect growth over the next six months, and expectations were more widespread," the Fed branch said.