03:14 PM EDT, 07/22/2025 (MT Newswires) -- Manufacturing contraction in the US Mid-Atlantic region unexpectedly deepened in July amid weakness in shipments and new orders, data from the Federal Reserve Bank of Richmond showed Tuesday.

The composite manufacturing index tumbled to minus 20 from minus 8 in June. The consensus was for an improvement to minus 2 in a survey compiled by Bloomberg.

The shipments measure dropped to minus 18 from last month's minus 5, while new orders declined further into negative territory, at minus 25. The gauge measuring the number of employees dropped to minus 16 from minus 6, the data showed.

The average growth rates of both prices paid and received over the last 12 month decelerated sequentially this month.

Six months out, the index for shipments climbed to 11 this month from 6 in June, while the metric charting new orders improved to 9 from 6.

Over the next year, firms expect growth in prices to accelerate, the Fed branch said.

US economic activity rebounded between late May and early this month, though concerns about rising cost pressures grew, according to the Fed's latest Beige Book released last week.

Prices grew across Fed districts, with businesses reporting "modest to pronounced" cost pressures tied to tariffs, especially for raw materials used in manufacturing and construction, the Beige Book showed.