03:52 PM EDT, 03/25/2025 (MT Newswires) -- Manufacturing activity in the US Mid-Atlantic region fell into contraction territory this month as both shipments and new orders turned negative, data from the Federal Reserve Bank of Richmond showed Tuesday.

The composite index dropped to minus 4 in March from 6 in February. The consensus in a survey compiled by Bloomberg was for decline to 1.

The gauge for shipments fell to minus 7 from 12, while new orders dropped to minus 4 from zero. The gauge measuring the number of employees moved to minus 1 from 9, the regional Fed's data showed.

The annual growth rate of prices paid increased "notably," while the prices received gauge increased, "but not by as much," the Fed branch said.

Six months out, the index for new orders fell to 6 this month from 8 in February, while the metric charting future shipments dipped to 7 from 13. The gauge for future local business conditions worsened to minus 22 from 2.

The forward-looking employment index improved to 8 this month from 1 in February. Over the next 12 months, firms expect "heightened growth in prices paid and some growth in prices received," according to the Fed branch.

Data from the Philadelphia Fed on Thursday showed that manufacturing activity in its part of the Mid-Atlantic region decelerated less than expected in March, while the outlook deteriorated to its lowest reading since January 2024.

Also last week, the New York Fed said activity dropped into steeper-than-expected contraction territory this month as both orders and shipments turned negative.