By Emon Reiser

Manufacturing activity in the U.S. central region slowed for the second consecutive month after improving sluggishly in the months prior, data from the Federal Reserve Bank of Richmond showed Wednesday.

The Fifth District Survey of Manufacturing Activity index came in at minus 11 points from the minus five reported in November. Economists had expected a reading of minus six, according to a poll carried out by The Wall Street Journal.

The index is compiled by surveying manufacturing firms across the Fifth Federal Reserve District, which comprises the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia.

Shipments, new orders and employment all decreased in December. Shipments were once again sharply negative, to minus 17 from minus eight the month before, while employment edged down to minus one from neutral.

"Firms remained generally pessimistic about local business conditions, as the index edged up but remained in negative territory," the Richmond Fed said.

Average growth rates of prices paid and prices received increased in December. Expected price changes over the next 12 months also increased slightly.

Write to Emon Reiser at emon.reiser@wsj.com; @emonreiser

(END) Dow Jones Newswires

December 27, 2023 10:39 ET (15:39 GMT)