https://www.cmegroup.com/content/dam/cmegroup/images/common/default/article-940x600.jpg
US: Kansas City Fed Manufacturing Index
| Actual | Previous | |
| Level | 11 | 8 |
Highlights
Business activity remains moderate with the manufacturing composite index up to 11 in June from 8 in May and versus 10 in April. New orders is at 13 in June versus 13 in May and 12 in April; employment is up at 10 in June versus minus 4 in May and 2 in April.
Prices paid register 68 in June and 63 in both May and April, suggesting significant input price pressure. Prices received come in at 33 in June versus 29 in May and 25 in April.
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.
