| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | -8.0 | -11.0 to -1.0 | -14.0 | -14.0 |
Highlights
The contraction in manufacturing business activity in the Federal Reserve Bank of Richmond's district continues at the same rate with the Richmond Fed's composite manufacturing index at minus 14 in November, unchanged from minus 14 in October and compared with minus 21 in September and minus 19 in August. The Econoday consensus looked for a slight improvement in the rate of decline to minus 8 in November.
New orders, the forward-looking indicator, came in at minus 19 in November versus minus 17 in October, minus 23 in September and minus 26 in August. Shipments declined to minus 12 from minus 8 in October, minus 18 in September and minus 15 in August.
Employment registered minus 10 in November compared with minus 17 in October, minus 22 in September and minus 15 in August. Wages continue to rise at 17 in November versus 16 in October, 15 in September and14 in August.
Not seasonally adjusted prices paid came in 2.48 in November versus 2.70 in October, 3.36 in September and 2.45 in August. NSA prices received registered 2.07 in November versus 1.71 in October versus 1.57 in September and 1.87 in August.
New orders, the forward-looking indicator, came in at minus 19 in November versus minus 17 in October, minus 23 in September and minus 26 in August. Shipments declined to minus 12 from minus 8 in October, minus 18 in September and minus 15 in August.
Employment registered minus 10 in November compared with minus 17 in October, minus 22 in September and minus 15 in August. Wages continue to rise at 17 in November versus 16 in October, 15 in September and14 in August.
Not seasonally adjusted prices paid came in 2.48 in November versus 2.70 in October, 3.36 in September and 2.45 in August. NSA prices received registered 2.07 in November versus 1.71 in October versus 1.57 in September and 1.87 in August.
Market Consensus Before Announcement
Some slowing in the ongoing rate of contraction is the call with the index at minus 8.0 in November versus minus 14.0 in October.
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.
