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US: Richmond Fed Manufacturing Index
| Actual | Previous | |
| Index | 3 | 0 |
Highlights
Manufacturing business activity in the Federal Reserve Bank of Richmond's district is marginally better in April from March. The result suggests sluggish growth in manufacturing as the second quarter begins but up from contraction in Q1.
The Richmond Fed's composite manufacturing index for current conditions is at 3 in April versus 0 in March, minus 10 in February and minus 6 in January.
New orders, the forward-looking indicator, is up to 8 in April from 4 in March and minus 9 in February. Current shipments index is at minus 2 in April, minus 2 in March and minus 13 in February.
Employment comes in at 0 in April versus minus 2 in March, minus 7 in February.
Price pressures appear relatively steady. Not seasonally adjusted prices paid are at 6.40 in April, 6.11 in March and 6.52 in February. NSA prices received register 4.73 in April, 4.85 in March, 4.25 in February.
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.