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US: Richmond Fed Manufacturing Index
| Consensus | Consensus Range | Actual | Previous | |
| Index | 8 | 7 to 8 | 4 | 13.0 |
Highlights
Growth slows more than expected with the Richmond Fed's manufacturing index down to 4 in June from 13 in May, and below the Econoday consensus forecast of 8 for June.
Employment slips into contraction at minus 1 in June from 3 in May and 0 in April. New orders eases to 9 in June from 17 in May and versus 8 in April. Shipments slide to 3 in June from 16 in May and minus 2 in April.
On the inflation front, prices paid rises to 6.99 in June from 5.96 in May and 6.40 in April, not seasonally adjusted. That suggests input price pressure is increasing even as growth slows.
Market Consensus Before Announcement
Forecasters expect the index at 8 for June, down from 13.0 in May but still showing expansion in business activity.
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.