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US: Richmond Fed Manufacturing Index
| Consensus | Consensus Range | Actual | Previous | |
| Index | -1 | -2 to 2 | -2 | 4 |
Highlights
The Richmond manufacturing composite index eases to minus 2 in September from 4 in August. This compares with an expected minus 1 reading and suggests marginal contraction in business activity, basically flat from August.
Key components are mixed. On the gloomier side, new orders slips into moderate contraction at minus 6 versus 3 in August and 5 in July. That points to weaker business ahead. Shipments falls to minus 5 from 11 in August and 8 in July. On the plus side, and a bit of a vote of confidence from firms, employment rises to 7 in September from minus 2 in August and 2 in July.
Price pressures continue with the prices paid index up to 7.08 from 6.22 in August and 6.08 in July. Higher energy costs in September are flowing into commodities and other inputs and are squeezing manufacturers.
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.