The Federal Reserve Bank of Richmond's manufacturing sector remains in contraction with the Richmond Fed composite manufacturing index at minus 5 in February versus minus 15 in January.

New orders, the forward-looking indicator, came in at minus 5 in February versus minus 16 in January. Shipments were at minus 15 in February versus minus 15 in January.

Employment rose to 7 from minus 15 in January. Wages registered 22 in February versus 30 in January. Prices paid were at 3.52 in February versus 4.19 in January. Prices received were at 2.85 in February versus 2.80 in January.

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.