02:28 PM EDT, 06/24/2025 (MT Newswires) -- Manufacturing contraction in the US Mid-Atlantic region unexpectedly improved in June as shipments and new orders rose but remained in negative territory, data from the Federal Reserve Bank of Richmond showed Tuesday.

The composite manufacturing index increased to minus 7 from minus 9 in May, while the consensus was for a reading of minus 10 in a survey compiled by Bloomberg.

The gauge for shipments rose to minus 3 from last month's minus 10, while new orders improved to minus 12 from minus 14. The gauge measuring the number of employees dropped to minus 5 from minus 2, the data showed.

The average growth rates of both prices paid and received over the last 12 month accelerated in June. The local business conditions index remained "solidly negative" at minus 20, though an improvement from minus 25 last month, the regional Fed said.

Six months out, the index for shipments climbed to 4 this month from 2 in May, while the metric charting new orders swung to 5 from minus 3. The forward-looking indicator of local business conditions deteriorated to minus 11 from minus 6, the data showed.

Over the next year, firms expect growth in price pressures to moderate, according to the Fed branch.

Last week, a survey by the Federal Reserve Bank of Philadelphia showed that manufacturing activity in the US Mid-Atlantic region remained in contraction territory in June.

On Monday, S&P Global's ( SPGI ) flash purchasing managers' index showed that growth in US private-sector output decelerated in June amid falling exports.

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