The latest survey from the Federal Reserve Bank of Richmond revealed on Wednesday that the U.S. fifth district's manufacturing was moderate in May.

According to the report, the composite manufacturing index inched up from 3 in April to 5 in May. 

Economists had expected a reading of 6.

A reading above 0 signals expansion, while a reading below 0 indicates contraction. 

Shipments and new orders had fairly flat reading and the third component, employment, remained positive, the report said. On the price front, price pressures eased for both prices received and prices paid in May.