03:50 PM EDT, 10/24/2024 (MT Newswires) -- Manufacturing activity in the US Midwest region improved to shallower contraction territory this month, a report from the Federal Reserve Bank of Kansas City showed on Thursday.

The composite manufacturing index edged up to minus 4 in October from minus 8 in September. The consensus was for a minus 7 print in a survey compiled by Bloomberg. Declines occurred across durable and nondurable goods, particularly chemical, steel and beverage manufacturing, the report showed.

"Regional factory activity continued to edge down this month," Kansas City Fed survey manager Megan Williams said. "However, producers continue to be positive about the months ahead, as they are expecting increases in production, new orders, and employment."

The production index rebounded to a flat reading from minus 18 in September while shipments swung positive to 7 from a minus 12 reading. New orders improved to minus 5 from minus 14 month to month, the Kansas City Fed's data showed.

Six months out, the seasonally adjusted composite index dipped to 7 in October from 9 in September. The future production index rose to 27 from 19, while shipments climbed to 21 from 10. The forward-looking indicator of new orders rose two points to 14.

The employment index charting present expectations rose to minus 2 this month from minus 11 the period prior while its future indicator dipped to 15 from 18. The current gauge on selling prices swung to growth territory, while expectations for selling prices in six months ticked up two points to 35.

Separately, the Federal Reserve Bank of Chicago said that its monthly national activity index declined to minus 0.28 in September from August's revised minus 0.01. Analysts surveyed by Bloomberg were expecting a reading of 0.50, which would have marked an improvement over August's unrevised 0.12 level.

Production indicators contributed minus 0.21 to the index in September, swinging negative sequentially.