| Actual | Previous | |
|---|---|---|
| Level | -5 | -5 |
Highlights
Kansas City Fed district manufacturing activity continues its slow decline in February with contraction at the same pace as in January and December. The Kansas City Fed composite index of current business conditions holds at minus 5 in February, unchanged from minus 5 in January and December. Employment is notably weaker while price pressures are up in February versus January.
The composite index of six-month expectations for business conditions registers 14 in February versus 15 in January and 17 in December. That suggests a moderately positive outlook despite weakening current conditions.
The current new orders index is at minus 7 in February versus minus 6 in January and minus 16 in December. Production is minus 13 in February versus minus 6 in January and minus 5 in December.
The number of employees index is down to minus 14 from 1 in January, 0 in December.
Prices paid rises to 38 in February from 18 in January and 18 in December. Prices received are at 17 in February, 14 in January, 8 in December.
The composite index of six-month expectations for business conditions registers 14 in February versus 15 in January and 17 in December. That suggests a moderately positive outlook despite weakening current conditions.
The current new orders index is at minus 7 in February versus minus 6 in January and minus 16 in December. Production is minus 13 in February versus minus 6 in January and minus 5 in December.
The number of employees index is down to minus 14 from 1 in January, 0 in December.
Prices paid rises to 38 in February from 18 in January and 18 in December. Prices received are at 17 in February, 14 in January, 8 in December.
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.
