Kansas City Fed manufacturing activity was flat again with the composite index at 0 in March, unchanged from 0 in February, and barely changed from minus 1 in January. The index of six-month expectations for business conditions rose to 3 in March from 1 in February and 3 in January.

For current conditions, the new orders index was minus 13 in March versus minus 6 in February and minus 8 in January. Production rose to 3 in March from minus 9 in February and minus 4 in January. Prices paid rose to 30 in March from 26 in February and 20 in January. Prices received were at 13 in March versus 17 in February and 16 in January. The number of employees index rose to 18 in March from 11 in February and from 4 in January and December.

The Kansas City Fed index offers a monthly assessment of change in the region's manufacturing sector. Positive readings indicate monthly growth and negative readings monthly contraction. Readings at zero indicate no change. The headline number is the composite index, an average of the production, new orders, employment, delivery time, and raw materials inventory indexes.

Investors track economic data like the Kansas City Survey of Manufacturers to understand the economic backdrop for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers a moderate growth environment that will not generate inflationary pressures. The survey gives a detailed look at Tenth District's manufacturing sector, how busy it is and where it is headed. Some of the survey indexes also provide insight on inflation pressures—including prices paid, prices received, wages & benefits, and capacity utilization. The equity market is also sensitive to this report because it is an early clue on the nation's manufacturing sector, reported in advance of the ISM manufacturing index and often in advance of the NAPM-Chicago index.