Manufacturing business activity in the Federal Reserve Bank of Richmond's district remains sluggish with the Richmond Fed's composite manufacturing index at -7 in December versus minus 15 in November and minus 4 in October.

New orders, the forward-looking indicator, comes in at minus 8 in December versus minus 22 in November and minus 6 in October. Shipments were at minus 11 versus minus 14 in November and 4 in October.

Employment is at minus 1 in December versus minus 7 in November and minus 10 in October. Wages are at 24 December versus 24 in November and 15 in October.

Price pressures remain moderate but present. Not seasonally adjusted prices paid register 6.53 in December and 6.84 in November. NSA prices received are at 4.98 in December versus 3.09 in November.

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.