US: Richmond Fed Manufacturing Index drops to 9 in August vs. 25 expected

• Richmond Fed Manufacturing Index fell sharply in August.
• US Dollar Index extends sideways grind near 93.00 after the data.

The Federal Reserve Bank of Richmond's Manufacturing Index fell to 9 in August from 27 in July. This print missed the market expectation of 25 by a wide margin.

Additional takeaways from the press release

"Several manufacturers reported deteriorating local business conditions."

"Survey contacts also noted that lead times continued to increase and inventories remained low."

"Overall, they were optimistic that conditions would improve in the next six months."

"The average growth rate of prices paid by survey respondents declined slightly in August, while that of prices received increased."

Market reaction

This report was largely ignored by market participants. As of writing, the US Dollar Index was virtually unchanged on the day at 92.95.