Kansas City Fed district manufacturing activity continues to contract in November while expectations are improving. The Kansas City Fed composite index of current business conditions is at minus 2 in November versus minus 4 in October, minus 8 in September, minus 3 in August and minus 13 in July.

The composite index of six-month expectations for business conditions registered 11 in November versus 7 in October, 9 in September, 8 in August, and 5 in July.

The current new orders index came in at minus 9 in November versus minus 5 in October, minus 14 in September, minus 12 in August, and minus 21 in July. Production slipped to minus 4 in November from 0 in October from minus 18 in September, 6 in August, and minus 12 in July.

The number of employees index was at 1 in November versus minus 2 in October, minus 11 in September, minus 7 in August, and minus 12 in July.

Prices paid registered 5 in November versus 19 in October, 13 in September, 18 in August, 17 in July, and 9 in June. Prices received came in at 6 in November versus 11 in October, minus 5 in September, 6 in August, 0 in July and 3 in June.

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.