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US: Richmond Fed Manufacturing Index
| Consensus | Consensus Range | Actual | Previous | |
| Index | 4 | 3 to 8 | 5 | 4 |
Highlights
The Richmond Fed manufacturing composite is nearly unmoved at 5 in July from 4 in June and 9 in May, suggesting ongoing very slow expansion.
New orders, the forward-looking indicator, eases to 5 in July from 8 in June while employment is pretty much flat a 2 from minus 1 in June.
Prices paid, which is not seasonally adjusted, is at 6.08 in June versus 6.99 in June and 5.96 in May, which points to pretty much no change in a somewhat elevated pace of input price inflation.
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.