| Actual | Previous | |
|---|---|---|
| Level | -8 | 0 |
Highlights
Kansas City Fed manufacturing activity returned to contraction in September as the KC Fed composite index of current conditions registered minus 8 in September versus 0 in August, minus 11 in July, and minus 12 in June.
The index of six-month expectations for business conditions eased to 1 in September from 2 in August, minus 2 in July, and minus 2 in June.
Current conditions sub-indexes mostly weakened in September. New orders was at minus 14 in September versus minus 3 in August, minus 20 in July, and minus 14 in June. Production dropped to minus 13 in September from 12 in August, minus 20 in July, and minus 10 in June.
Prices paid came in at 7 in September versus 13 in August, 9 in July, and 4 in June. Prices received were at 2 versus minus 6 in August, minus 7 in July, and 3 in June. The number of employees index was at 2 in September versus 1 in August, 4 in July, and minus 12 in June.
The index of six-month expectations for business conditions eased to 1 in September from 2 in August, minus 2 in July, and minus 2 in June.
Current conditions sub-indexes mostly weakened in September. New orders was at minus 14 in September versus minus 3 in August, minus 20 in July, and minus 14 in June. Production dropped to minus 13 in September from 12 in August, minus 20 in July, and minus 10 in June.
Prices paid came in at 7 in September versus 13 in August, 9 in July, and 4 in June. Prices received were at 2 versus minus 6 in August, minus 7 in July, and 3 in June. The number of employees index was at 2 in September versus 1 in August, 4 in July, and minus 12 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.
