03:36 PM EDT, 08/26/2025 (MT Newswires) -- Manufacturing contraction in the US Mid-Atlantic region improved more than projected in August as shipments, new orders and employment rose, data from the Federal Reserve Bank of Richmond showed Tuesday.

The composite manufacturing index advanced to minus 7 this month from minus 20 in July. The consensus was for an improvement to minus 11 in a survey compiled by Bloomberg. "Fifth district manufacturing activity remained soft in August," the Richmond Fed said in a statement.

The metric charting shipments increased to minus 5 from minus 18, while new orders advanced to minus 6 from minus 25. The gauge measuring the number of employees rose to minus 11 from minus 16, the data showed.

The average growth rate of prices paid increased "notably" in August, while growth in prices received was almost unchanged, the regional Fed said.

Six months out, the index for shipments rose to 13 this month from 11 in July, while the measure for new orders remained at 9. The forward-looking indicator of local business conditions deteriorated to minus 10 from minus 2, while the future employment index swung to 3 from minus 10, according to the report.

Over the next year, firms expected growth in prices paid to remain elevated and growth in prices received to accelerate, the Fed branch said.

On Monday, a survey by the Dallas Fed showed that the Texas manufacturing sector swung back into the contraction territory in August, even as new orders turned positive for the first time since January.

Earlier this month, New York Fed data showed that New York manufacturing growth reached its highest level since November this month, though firms turned less optimistic sequentially about future conditions. A separate survey by the Philadelphia Fed showed that manufacturing activity in the US Mid-Atlantic region unexpectedly swung into contraction territory in August, while the prices paid index hit the highest in more than three years.