| Actual | Previous | |
|---|---|---|
| Level | 0 | -11 |
Highlights
Kansas City Fed manufacturing activity was flat in August from July as the Kansas City Fed composite index for current conditions moved up to 0 from minus 11 in July and minus 12 in June.
The index of six-month expectations for business conditions improved to 2 in August from minus 2 in July and minus 2 in June.
Current conditions indexes all improved in August from July except indexes for number of employees and new export orders. The new orders index was at minus 3 in August versus minus 20 in July and minus 14 in June. Production jumped to 12 in August from minus 20 in July and minus 10 in June.
Prices paid came in at 13 in August versus 9 in July and 4 in June. Prices received were at minus 6 in August versus minus 7 in July and 3 in June. The number of employees index declined to 1 from 4 in July and from minus 12 in June. New export orders declined to minus 8 from minus 3 in July and versus minus 10 in June.
The index of six-month expectations for business conditions improved to 2 in August from minus 2 in July and minus 2 in June.
Current conditions indexes all improved in August from July except indexes for number of employees and new export orders. The new orders index was at minus 3 in August versus minus 20 in July and minus 14 in June. Production jumped to 12 in August from minus 20 in July and minus 10 in June.
Prices paid came in at 13 in August versus 9 in July and 4 in June. Prices received were at minus 6 in August versus minus 7 in July and 3 in June. The number of employees index declined to 1 from 4 in July and from minus 12 in June. New export orders declined to minus 8 from minus 3 in July and versus minus 10 in June.
Definition
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.
Description
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.
