The Richmond Fed manufacturing sector rebounded into growth territory in September -- for the first time since December 2022 -- with the composite manufacturing index at 5, up from minus 7 in August, minus 9 in July, minus 8 in June, and minus 10 in May.

New orders, the forward-looking indicator, recovered to 3 in September from minus 11 in August, minus 20 in July, minus 16 in June, and minus 24 in May.

Shipments were at 7 in September versus minus 5 in August, minus 6 in July, minus 5 in June, and minus 6 in May.

Employment rose to 7 in September from minus 3 in August, 5 in July, minus 1 in June and 5 in May. Wages rose to 23 in September from 22 in August, 19 in July, 17 in June, and 19 in May.

Prices paid were at 4.06 in September versus 3.17 in August, 4.07 in July, 4.56 in June, and 4.81 in May. Prices received registered 3.06 in September versus 3.11 in August, 4.01 in July, 4.56 in June, and 4.91 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.