https://www.cmegroup.com/content/dam/cmegroup/images/common/default/article-940x600.jpg
US: Kansas City Fed Manufacturing Index
| Actual | Previous | |
| Level | 10 | 9 |
Highlights
Kansas City Fed district manufacturing activity shows ongoing moderate expansion as the Kansas City Fed composite index of current business conditions firms to 10 in August from 9 in July and 11 In June. Input costs remain elevated and problematic, however, and staffing levels are flat, which points to caution.
The composite index of six-month expectations for business conditions is steady and firm at 20 in August versus 20 in July and 19 in June. Six-month capex expectations is improving at 17 in August versus 10 in July and 0 in June.
The current new orders index is at 16 in August versus 10 in July and 13 in June. Production is at 17 in August from 17 in July and 19 in June. The number of employees index is at 0 in August versus 2 in July and 10 in June.
Prices paid registers 55 in August, 52 in July, and 68 in June. Prices received are at 36 in August versus 28 in July and 33 in June.
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.
