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