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US: Richmond Fed Manufacturing Index
| Actual | Previous | |
| Index | -6 | -7 |
Highlights
The contraction in manufacturing business activity in the Federal Reserve Bank of Richmond's district continued at roughly the same pace in January from December though it slackened from November. The result points to ongoing doldrums in manufacturing as the year begins.
The Richmond Fed's composite manufacturing index for current conditions came in at minus 6 in January versus minus 7 in December and minus 15 in November.
New orders, the forward-looking indicator, edged up to minus 6 from minus 8 and minus 22 in November. Current shipments rose to minus 5 in January from minus 11 in December and minus 14 in November. Employment came in at minus 6 in January versus minus 1 in December and minus 7 in November.
Price pressures were mixed. Not seasonally adjusted prices paid rose to 7.06 in January from 6.53 in December and 6.84 in November. NSA prices received registered 4.58 in January from 4.98 in December and 3.09 in November.
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.