The Richmond Fed manufacturing composite index edged up but still showed slowing business activity at minus 7 in June versus minus 15 in May and minus 10 in April.

New orders, the forward-looking indicator, came in at minus 15 in June versus minus 29 in May and minus 20 in April. Shipments were at minus 5 in June versus minus 13 in May and minus 7 in April. Employment was at 2 in June versus 5 in May and 0 in April. Wages were steady at a high-ish 17 in June versus 17 in May and 25 in April.

Prices paid were at 4.19 in June versus 4.95 in May and 7.57 in April. Prices received registered 3.84 in June versus 5.39 in May and 5.63 in April.

Richmond Fed's manufacturing index in June is not expected to emerge from five prior months of contraction, at a consensus minus 10 versus minus 15 in May.

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.