03:33 PM EDT, 05/28/2025 (MT Newswires) -- US Mid-Atlantic region manufacturing contraction improved in line with market expectations in May as shipments and new orders increased, data from the Federal Reserve Bank of Richmond showed Wednesday.

The composite manufacturing index rose to minus 9 this month from minus 13 in April, matching the consensus in a survey compiled by Bloomberg. The latest data showed that fifth district manufacturing activity "slowed," the Richmond Fed said.

The gauge for shipments rose to minus 10 in May from minus 17 last month, while new orders increased to minus 14 from minus 15. The gauge measuring the number of employees improved to minus 2 from minus 5, the regional Fed's data showed.

The average growth rates of prices paid and received were "nearly unchanged" this month, the Fed branch said.

Six months out, the index for future shipments swung to 2 in May from minus 20 last month, while the metric charting new orders jumped to minus 3 from minus 26. The forward-looking indicator of local business conditions rose to minus 6 from minus 37, while the future employment index improved to minus 6 from minus 18, the data showed.

Over the next 12 months, firms expected "heightened growth" in prices paid and received, the Richmond Fed said.

New York Fed data released earlier this month showed that New York manufacturing contraction worsened in May as firms remained pessimistic regarding the outlook. A survey by the Philadelphia Fed showed that the manufacturing downturn in the US Mid-Atlantic region improved this month.