The Federal Reserve Bank of Richmond's district manufacturing sector remained in contraction with the Richmond Fed composite manufacturing index at minus 7 in April versus minus 11 in March and minus 5 in February.

New orders, the forward-looking indicator, came in at minus 9 in April versus minus 17 in March and minus 5 in February. Shipments came in at minus 10 versus minus 14 in March and minus 15 in February.

Employment registered minus 2 in April versus 0 in March and 7 in February. Wages were at 16 in April versus 23 in March and 22 in February. Prices paid were at 2.79 in April versus 3.22 in March and 3.52 in February. Prices received registered 2.37 in April versus 2.23 in March and 2.85 in February.

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.