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US: Richmond Fed Manufacturing Index
| Consensus | Consensus Range | Actual | Previous | |
| Index | 4.0 | 4.0 to 5.0 | 13.0 | 3 |
Highlights
Manufacturing in the Richmond Fed district notably picks up steam in May with an index reading of 13, well above the expected 4, and up from 3 in April and 0 in March.
The uptick reflects strong gains in new orders, shipments, and employment, with new orders surging to 17 in May from 8 in April and 4 in March. Shipments jumps to 16 from minus 2 in April and March. Employment is up to 3 in May from 0 in April and minus 2 in March.
Input prices remain somewhat elevated at 5.96 in May compared with 6.40 in April and 6.11 in March, not seasonally adjusted.
Market Consensus Before Announcement
The consensus sees the index at 4.0 in May versus 3.0 in April.
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.