Manufacturing activity in the central Atlantic states rose for the fourth consecutive month in May, the Richmond, Va., Federal Reserve Bank has said.

Shipments "edged slightly higher," although new orders "inched lower," the Richmond Fed said.

The report also said that although indicators were mixed with inventories growing at a slower pace than the previous month, the big picture "suggested continued solid activity."

It was also reported that the broadest index in the monthly report, the seasonally adjusted composite index of manufacturing activity, fell 4 points from 30 to 26 with shipments up 2 points to 32 and new orders down 5 points to 36.

The employment index showed a worrisome decline, however, falling from 13 to 4.

The report further noted that the survey of 144 businesses uses indexes with zero as a break-even point, so that the overall pace of growth slowed in May, but the numbers still indicated business activity growing. (With Inputs from Agencies)