03:50 PM EDT, 05/16/2024 (MT Newswires) -- Manufacturing activity in the Mid-Atlantic region declined more than expected this month as orders and shipments fell into negative territory, the Federal Reserve Bank of Philadelphia said Thursday.

The Manufacturing Business Outlook Survey's headline gauge for business activity dropped to 4.5 in May from 15.5 in April, mostly undoing the index's increase from April, according to the regional Fed. A survey compiled by Bloomberg indicated a decline to 7.8.

The gauge for new orders tumbled to negative 7.9 from positive 12.2 sequentially in its first below-zero reading since February. Shipments fell to negative 1.2 from 19.1 in the component's first negative reading since January.

More than 29% of firms in the May 6-13 survey reported increases in general activity, down from 38% last quarter, the Fed branch wrote. The share reporting declines in activity ticked up three percentage points to 25%.

While the employment index improved to negative 7.9, it continued to suggest declines in employment overall, the Philly Fed said. The metric for average workweek improved 10.4 points to negative 8.3.

The prices paid index eased to 18.7 from 23 month over month while prices received grew 1.1 points to 6.6, the survey showed.

Six months out, expectations for general activity dipped to 32.3 in May from 34.3 in April while the future new orders component eased about three points to 39.7. Shipment expectations rose sharply to 46.2 from 29.3. Firms remain optimistic overall, the regional Fed said.

The forward-looking employee index climbed to 21.7 from 12.8 month to month.