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US: Richmond Fed Manufacturing Index
| Actual | Previous | |
| Index | -10 | -6 |
Highlights
The contraction in manufacturing business activity in the Federal Reserve Bank of Richmond's district continued at a marginally faster pace in February from January and December. 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 10 in February versus minus 6 in January and minus 7 in December. Any figure below the neutral level of zero indicates contraction.
New orders, the forward-looking indicator, came in at minus 9 in February versus minus 6 in January and minus 8 in December. Current shipments fell to minus 13 from minus 5 in January and minus 11 in December. Employment came in at minus 7 versus minus 6 in January versus minus 1 in December.
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.