The latest survey from the Federal Reserve Bank of Richmond revealed on Tuesday that the U.S. fifth district's manufacturing rebounded in January.

According to the report, the composite manufacturing index surged from -5 in December to 20 in January (the highest level since September 2018), as its three major components - shipments (29 from -6 in December), new orders (13 from -13), and employment (20 from 7) - rose. In addition, local business conditions index recorded its largest increase since February 2013 (to 16 in January from -6 in December). Moreover, manufacturers were optimistic that conditions would continue to strengthen in the coming months, the Richmond Fed said. At the same time, the survey respondents reported declines in the average growth rates of both price paid (1.21 from 1.73) and prices received (1.31 from 1.60), and said they expected the growth rate of prices paid to rise and that of prices received to fall in the near future.

Economists had expected a reading of +9. A reading above 0 signals expansion, while a reading below 0 indicates contraction.