Manufacturing business activity contracts again in June with the Richmond Fed's current conditions index at minus 7 in June versus minus 9 in May, matching the Econoday consensus expectation.

The component indexes showed shipments up to minus 3 from minus 10, new orders up to minus 12 from minus 14 but employment down to minus 5 from minus 2. Prices paid rose to 6.10 from 5.35, and prices received rose to 3.57 from 2.73.

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.