The Richmond Fed manufacturing composite index showed more deterioration in business activity as it fell to minus 10 in April from minus 5 in March.

New orders, the forward-looking indicator, dropped to minus 20 in April from minus 11 in March. Shipments dipped to minus 7 in April from 2 in March. Employment edged up to 0 in April from minus 5 in March. Wages remained elevated at 25 in April versus 27 in March. Order backlog declined notably to minus 31 in April from minus 14 in March.

Prices paid continued to rise at 7.57 in April versus 6.24 in March. Prices received registered 5.63 in April versus 5.59 in March.

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.