Richmond Fed manufacturing index falls into contraction in September

  • Richmond Fed’s September manufacturing index fell to -2 from 4 in August.
  • The reading missed the 2 consensus estimate and turned negative for the first time since February.
  • Service revenues rose to 0, while the dollar held firm as U.S. yields found a floor.

The Federal Reserve Bank of Richmond’s September manufacturing index fell to -2 from 4 in August, below the Bloomberg-compiled consensus estimate of 2 and turning negative for the first time since February. The reading marked a clear contraction in the Richmond district, extending signs of slowing expansion seen in other regional Federal Reserve manufacturing surveys. The services revenue index improved to 0 from -8, although other service-sector indicators showed a faster pace of contraction. In foreign-exchange markets, the dollar remained resilient as U.S. yields found a floor alongside movements in crude oil prices. Dollar-yen traded around 157.30, while euro-dollar declined from $1.1466 to $1.1453 and GBP/USD fell from $1.3371 to $1.3357. The currency market focused more on interest-rate trends than on the weakness in manufacturing indicators.

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