| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | -8.0 | -10.0 to -7.0 | -10 | -14.0 |
Highlights
The contraction in manufacturing business activity in the Federal Reserve Bank of Richmond's district continues with the Richmond Fed's composite manufacturing index at minus 10 in December versus minus 14 in November, minus 14 in October and minus 21 in September. The Econoday consensus looked for a slight improvement to minus 8 in December.
New orders, the forward-looking indicator, came in at minus 11 in December versus minus 19 in November, minus 17 in October, and minus 23 in September. Shipments were at minus 11 in December versus minus 12 in November, minus 8 in October, and minus 18 in September.
Employment registered minus 8 in December versus minus 10 in November, minus 17 in October, and minus 22 in September. Wages continue to rise at about the same pace at 16 in December versus 17 in November, 16 in October, and 15 in September.
Not seasonally adjusted prices paid came in 2.86 in December versus 2.48 in November, 2.70 in October and 3.36 in September. NSA prices received registered 1.71 in December versus 2.07 in November, 1.71 in October and 1.57 in September.
New orders, the forward-looking indicator, came in at minus 11 in December versus minus 19 in November, minus 17 in October, and minus 23 in September. Shipments were at minus 11 in December versus minus 12 in November, minus 8 in October, and minus 18 in September.
Employment registered minus 8 in December versus minus 10 in November, minus 17 in October, and minus 22 in September. Wages continue to rise at about the same pace at 16 in December versus 17 in November, 16 in October, and 15 in September.
Not seasonally adjusted prices paid came in 2.86 in December versus 2.48 in November, 2.70 in October and 3.36 in September. NSA prices received registered 1.71 in December versus 2.07 in November, 1.71 in October and 1.57 in September.
Market Consensus Before Announcement
Another month of slow contraction is the call for Richmond Fed manufacturing with the index at minus 8.0, marginally better than minus 14.0 in both November and 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.
