Manufacturing business activity in the Federal Reserve Bank of Richmond's district rebounded with the Richmond Fed's composite manufacturing index at 6 in February versus minus 4 in January and minus 10 in December.

New orders, the forward-looking indicator, came in at 0 in February versus minus 4 in January, and minus 11 in December. Shipments were at 12 in February versus minus 9 in January, minus 11 in December.

Employment xxx at 9 in February after expanding at 3 in January versus minus 8 in December. Wages came in at 21 in Februry from 22 in January, 16 in December.

Price pressures were pretty stable. Not seasonally adjusted prices paid came in at 2.23 in February versus 2.37 in January, 2.86 in December. NSA prices received registered 1.62 in February versus 1.21 in January, 1.71 in December.

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.