| Actual | Previous | |
|---|---|---|
| Level | -8 | -8 |
Highlights
Kansas City Fed manufacturing activity contracted at the same pace in October as in September as the KC Fed composite index of current conditions remained at minus 8 after registering minus 8 in September, 0 in August, minus 11 in July, and minus 12 in June.
The index of six-month expectations for business conditions was unchanged at 1 in October from 1 in September, and versus 2 in August, minus 2 in July and minus 2 in June.
For current conditions, the new orders index declined to minus 22 in October from minus 14 in September, minus 3 in August, minus 20 in July, and minus 14 in June. Production was at minus 8 in October after minus 13 in September, 12 in August, minus 20 in July, and minus 10 in June.
Prices paid came in at minus 2 in October versus 7 in September, 13 in August, 9 in July and 4 in June. Prices received were at 0 in October versus 2 in September, minus 6 in August, minus 7 in July, and 3 in June. The number of employees index was a minus 4 in October versus 2 in September, 1 in August, 4 in July, and minus 12 in June.
The index of six-month expectations for business conditions was unchanged at 1 in October from 1 in September, and versus 2 in August, minus 2 in July and minus 2 in June.
For current conditions, the new orders index declined to minus 22 in October from minus 14 in September, minus 3 in August, minus 20 in July, and minus 14 in June. Production was at minus 8 in October after minus 13 in September, 12 in August, minus 20 in July, and minus 10 in June.
Prices paid came in at minus 2 in October versus 7 in September, 13 in August, 9 in July and 4 in June. Prices received were at 0 in October versus 2 in September, minus 6 in August, minus 7 in July, and 3 in June. The number of employees index was a minus 4 in October versus 2 in September, 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.
