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.