US: Richmond Fed Manufacturing Index recovers to -27 in May vs. -47 expected
- Richmond Fed Manufacturing Index rebounds sharply in May.
- US Dollar Index clings to small gains above 99 after data.
The activity in the Federal Reserve's Fifth District's manufacturing sector continued to decline at a softer pace in May than it did in April with the Composite Index of the Richmond Fed's Survey of Manufacturing Activity recovering to -27 from -53. This reading came in much better than the market expectation of -47.
"All three components — shipments, new orders and employment — were above their April readings but still in contractionary territory," the publication read. "The index for local business conditions was also negative, but contacts expected conditions to improve in the next six months."
Market reaction
The US Dollar Index largely ignored this data and was last seen gaining 0.07% on the day at 99.08.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
