02:25 PM EDT, 05/29/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic region unexpectedly rebounded to a breakeven level this month as shipments rallied, the Federal Reserve Bank of Richmond said Wednesday.

The composite index came in at zero from minus 7 in April. The consensus was for the index to hold steady, according to a survey compiled by Bloomberg.

The gauge for shipments jumped to 13 from minus 10 month to month while the index charting new orders improved three points to minus 6, the Richmond Fed said. The employment index dipped to minus 6 from minus 2.

"Fifth District manufacturing activity improved but remained sluggish in May," the Richmond Fed said. Firms' optimism about local business conditions declined to three from six.

The annual growth rate for prices paid increased to 2.92% in the Mid-Atlantic region this month from 2.79% in April, while the pace of prices received decelerated to 1.63% from 2.37%. Firms expect price growth to pick up over the next 12 months, according to the Fed branch.

Six months out, the index for shipments dipped to 25 in May from 32 in April while volume of new orders decreased to 25 from 31. The forward-looking employment index slid to zero from 3 month to month.

Earlier this month, the Federal Reserve Bank of New York said the manufacturing contraction in its region unexpectedly deepened in May, while the Federal Reserve Bank of Philadelphia said manufacturing activity in the Mid-Atlantic region tumbled more than expected but stayed positive. In the Midwest region, activity improved more than expected but remained negative, according to the Federal Reserve Bank of Kansas City.