The Federal Reserve Bank of Richmond district manufacturing sector fell into contraction with the Richmond Fed composite manufacturing index down to negative 5 in November from 3 in October and 5 in September. Forecasters looked for the index to remain barely positive at 1.

New orders, the forward-looking indicator, retreated to minus 5 in November from minus 4 in October and from 3 in September.

Shipments dropped to minus 8 from 9 in October and 7 in September.

Employment declined to 0 in November from 7 in October and 7 in September. Wages registered 25 in November from 29 in October and 23 in September.

Prices paid were at 3.08 in November from 3.02 in October and 4.06 in September. Prices received registered 1.97 in November versus 2.07 in October and 3.06 in September.

Richmond Fed's manufacturing index is expected to decline in November to 1 versus 3 in October.

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.