03:44 PM EDT, 03/26/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic unexpectedly slowed this month as orders fell deeper into contraction and shipments remained subdued, the Federal Reserve Bank of Richmond said Tuesday.

The composite index came in at negative 11 in March, widening from negative 5 in February. The consensus was for a sequentially flat reading of negative 5, according to a survey compiled by Bloomberg. The latest data showed that "fifth district manufacturing activity slowed," the regional Fed said.

The index charting new orders dropped to negative 17 from negative 5, while the shipments gauge improved by a point to negative 14 but remained "solidly negative," the Fed said. The employment index declined to a reading of 0 from 7 month to month.

The growth rate for prices paid slowed to 3.22% in the Mid-Atlantic region this month from 3.52% in February. The pace of prices received dropped to 2.23% from 2.85%. Firms expect growth rates of both price metrics to moderate further over the next 12 months, the Fed said.

The index for local business conditions slid two points back into contraction at negative 1 but improved to 12 from 3 for the index charting expectations six months out, the report showed.

The measures for shipments and volume of new orders six months from now both dipped to 19 from 22 on a sequential basis. The forward-looking employment index also fell, to 2 from 12 month to month.

Sentiment about capital expenditures decreased two points to negative 9 in the current conditions index while improving to 0 from negative 5 in the expectations index. A similar trend was reflected in the indices charting equipment and software spending.

Other regional manufacturing surveys released earlier this month also posted declines. Manufacturing activity in Texas and New York each fell more than expected into deeper contraction territory in March, the Dallas and New York Federal Reserve banks said. The Philadelphia Fed's report showed Mid-Atlantic activity slipped but stayed unexpectedly positive.