| Actual | Previous | |
|---|---|---|
| Level | -4 | -2 |
Highlights
Kansas City Fed district manufacturing activity contracts at a slightly faster pace in December from November while expectations continue to improve. The Kansas City Fed composite index of current business conditions is at minus 4 in December versus minus 2 in November and minus 4 in October.
The composite index of six-month expectations for business conditions rose to 18 in December from 11 in November and 7 in October.
The current new orders index declined to minus 17 in December from minus 9 in November and minus 5 in October. Production slipped to minus 5 in December from minus 4 in November and 0 in October.
The number of employees index was at 3 in December versus 1 in November and minus 2 in October.
Prices paid registered rose to 16 in December from 5 in November and 19 in October. Prices received came in at 10 in December versus 6 in November and 11 in October.
The composite index of six-month expectations for business conditions rose to 18 in December from 11 in November and 7 in October.
The current new orders index declined to minus 17 in December from minus 9 in November and minus 5 in October. Production slipped to minus 5 in December from minus 4 in November and 0 in October.
The number of employees index was at 3 in December versus 1 in November and minus 2 in October.
Prices paid registered rose to 16 in December from 5 in November and 19 in October. Prices received came in at 10 in December versus 6 in November and 11 in October.
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.
