A report released by the Federal Reserve Bank of New York on Monday showed regional manufacturing activity has contracted at a slower rate in the month of April.

The New York Fed said its general business conditions index climbed to a negative 14.3 in April from a negative 20.9 in March, although a negative reading still indicates contraction. Economists had expected the index to jump to a negative 9.0.

The increase by the headline index came as the new orders index inched up to a negative 16.2 in April from a negative 17.2 in March, while the number of employees index rose to a negative 5.1 in April from a negative 7.1 in March.

Meanwhile, the shipments index plunged to a negative 14.4 in April from a negative 6.9 in March, indicating a significantly faster contraction.

The report also said the prices received index dipped to 16.9 in April from 17.8 in March, but the prices paid index climbed to 33.7 in April from 28.7 in March.

Looking ahead, the New York Fed said firms still expect conditions to improve over the next six months, although optimism remained subdued.

The index for future business conditions fell to 16.7 in April from 21.6 in March, as the outlook for employment growth weakened noticeably.

On Thursday, the Federal Reserve Bank of Philadelphia is scheduled to release its report on regional manufacturing activity in the month of April.

The Philly Fed Index is expected to dip to 0.8 in April from 3.2 in March, although a positive reading would still indicate growth.