US: Richmond Fed Manufacturing Index

Tue Apr 25 09:00:00 CDT 2017

Consensus Consensus Range Previous
Level 16.0 15.0 to 20.0 22

Market Consensus Before Announcement
The Richmond Fed's manufacturing index wasn't the first regional report to begin climbing sharply higher but it has been very strong so far this year. Unusual strength in both new orders and backlog orders highlight this report. Forecasters see the April index coming in at a very solid 16.0 vs March's unusually strong 22.

This survey tracks business conditions in the Richmond Fed's manufacturing sector. The headline index is a composite of the new orders, shipments, and employment indexes.

Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. By tracking economic data such as the regional Fed surveys, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more moderate growth so that it won't lead to inflation. These surveys give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since manufacturing is a major sector of the economy, this report has a big influence on market behavior.