Manufacturing activity contracted in the mid-Atlantic region in May for the first time in eight months. New orders decreased and firms cut jobs.
The Federal Reserve Bank of Philadelphia says its index of factory activity fell to -5.8 from 8.5 in April. Any reading below zero indicates contraction.
Measures of new orders and employment also fell in May, the bank said. That suggests manufacturers in the region are cutting jobs.
The report conflicts with a survey by the New York Fed that showed stronger growth in that state in May.