| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | -6 | -7 to -6 | 0 | -7 |
Highlights
Business activity in the Federal Reserve Bank of Richmond's district manufacturing sector improved but remained sluggish in May. The Richmond Fed composite manufacturing index edged up to a neutral reading of 0 in May from minus 7 in April, minus 11 in March and minus 5 in February. The outcome was better than expected as the Econoday consensus saw the index at minus 6 for May.
New orders, the forward-looking indicator, came in at minus 6 in May versus minus 9 in April, minus 17 in March and minus 5 in February. Shipments won the most improved prize as it rose to 13 in May from minus 10 in April, minus 14 in March and minus 15 in February.
Employment registered minus 6 in May versus minus 2 in April, 0 in March and 7 in February. Wages were at 11 in May versus 16 in April, 23 in March and 22 in February. Prices paid were at 2.92 in May versus 2.79 in April, 3.22 in March and 3.52 in February. Prices received registered 1.63 in May versus 2.37 in April, 2.23 in March and 2.85 in February.
New orders, the forward-looking indicator, came in at minus 6 in May versus minus 9 in April, minus 17 in March and minus 5 in February. Shipments won the most improved prize as it rose to 13 in May from minus 10 in April, minus 14 in March and minus 15 in February.
Employment registered minus 6 in May versus minus 2 in April, 0 in March and 7 in February. Wages were at 11 in May versus 16 in April, 23 in March and 22 in February. Prices paid were at 2.92 in May versus 2.79 in April, 3.22 in March and 3.52 in February. Prices received registered 1.63 in May versus 2.37 in April, 2.23 in March and 2.85 in February.
Market Consensus Before Announcement
The Richmond Fed's district manufacturing sector index is forecast at minus 6 in May, in contraction for a seventh month in a row but rising slightly for a second straight monthly improvement after picking up to minus 7 in April from minus 11 in March.
Definition
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.
Description
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.
