US: Richmond Fed Manufacturing Index recovers to 0 in June from -27 in May
|- Richmond Fed Manufacturing Index moves out of negative territory in June.
- US Dollar Index slumps below 96.50 on upbeat US data.
The activity in the Federal Reserve's Fifth District's manufacturing sector steadied in June with the Composite Index of the Richmond Fed's Survey of Manufacturing Activity recovering to 0 from -27 in May. This reading came in much better than the market expectation of -41.
"Shipments were relatively flat, more firms reported increases in new orders, and firms generally reported continued declines in employment," Richmond Fed noted in its publication. "The index for local business conditions rose notably in June, indicating optimism among firms after three months of some of the most negative readings on record for that series. Manufacturers were also optimistic, overall, that conditions would improve in the next six months."
Market reaction
The greenback continues to weaken against its rivals as the positive data dampens safe-haven demand. As of writing, the US Dollar Index was losing 0.56% on the day at 96.47.
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