| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 2 | -3 to 3 | -10 | 0 |
Highlights
Business activity in the Federal Reserve Bank of Richmond's district manufacturing sector returned to contraction in June. The Richmond Fed composite manufacturing index dipped to -10 from a neutral reading of 0 in May, minus 7 in April, minus 11 in March and minus 5 in February. Expectations in the Econoday survey of forecasters centered on an uptick to 2 for June.
New orders, the forward-looking indicator, came in at a gloomy minus 17 in June, down from minus 6 in May, minus 9 in April, minus 17 in March and minus 5 in February. Shipments dropped to minus 9 in June after rising to 13 in May from minus 10 in April, minus 14 in March and minus 15 in February.
Employment registered minus 2 in June versus minus 6 in May, minus 2 in April, 0 in March and 7 in February. Wages were on the high side at 20 in June versus 11 in May, 16 in April, 23 in March and 22 in February.
Prices paid were at 4.01 in June versus 2.92 in May, 2.79 in April, 3.22 in March and 3.52 in February. Prices received registered 2.58 in June versus 1.63 in May, 2.37 in April, 2.23 in March and 2.85 in February.
New orders, the forward-looking indicator, came in at a gloomy minus 17 in June, down from minus 6 in May, minus 9 in April, minus 17 in March and minus 5 in February. Shipments dropped to minus 9 in June after rising to 13 in May from minus 10 in April, minus 14 in March and minus 15 in February.
Employment registered minus 2 in June versus minus 6 in May, minus 2 in April, 0 in March and 7 in February. Wages were on the high side at 20 in June versus 11 in May, 16 in April, 23 in March and 22 in February.
Prices paid were at 4.01 in June versus 2.92 in May, 2.79 in April, 3.22 in March and 3.52 in February. Prices received registered 2.58 in June versus 1.63 in May, 2.37 in April, 2.23 in March and 2.85 in February.
Market Consensus Before Announcement
No change was the indication from the Richmond Fed's manufacturing index in May, and marginal change at plus 2 is expected for June.
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.
