Recent Updates
- US: Wholesale Trade (Feb), Producer Prices (Mar)
- US: Producer Price Indexes by Commodity Detail (Mar)
- US: Producer Price Indexes by Industry Detail (Mar)
- Canada: Investment in Building Construction (Feb), Labor Force Survey (Mar)
- more updates...
Economy in Brief
U.S. Wholesale Inventories Post Strong February Gain; Sales Fall
Wholesale inventories increased 0.6% (2.0% y/y) during February...
U.S. Initial Unemployment Insurance Claims Unexpectedly Increase
Initial claims for unemployment insurance rose to 744,000 during the week ended April 3...
Total PMIs Gain Traction in March
The PMI readings for March show improvement again...
U.S. Consumer Credit Outstanding Bounces Back in February
Consumer credit outstanding surged $27.6 billion during February...
U.S. Trade Deficit Widens to Record during February
The U.S. trade deficit in goods and services widened to $71.1 during February...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller August 28, 2015
The Federal Reserve Bank of Kansas City reported that manufacturing sector business activity slackened during August. The Composite index of 10th District factory sector activity fell to -9 and reversed July's improvement. The figures compare to May's low of -13. The Fed indicated that the new orders reading eased to its lowest level in three months and shipments reversed a July improvement. The employment figure improved, however, and reversed most of its July deterioration. It still suggested meaningful job loss. The rate of materials inventory decumulation picked up steam. Separately, production fell at nearly the swiftest rate since the recession but the decline in new export orders eased. Prices paid for finished product fell at nearly the fastest rate since 2009 and raw materials pricing slackened as well.
The composite index for business activity expected in six months neared its recovery low of zero. Expectations for shipments and new orders weakened substantially along with employment prospects. The expected rate of materials inventory decumulation increased, to be accomplished by strengthened production cuts. Capital spending plans were weakened as were export expectations. Finished product price expectations eased to near the expansion low along with raw materials price expectations.
The diffusion indexes are calculated as the percentage of total respondents reporting increases minus the percentage reporting declines. The survey included 94 responses from plants in Colorado, Kansas, Nebraska, Oklahoma, Wyoming northern New Mexico. Data for the Kansas City Fed Survey can be found in Haver's SURVEYS database.
Kansas City Federal Reserve Manufacturing Survey (SA) | Aug | Jul | Jun | Aug '14 | 2014 | 2013 | 2012 |
---|---|---|---|---|---|---|---|
Conditions Versus One Month Ago (% Balance) | -9 | -7 | -9 | 3 | 6 | 0 | 4 |
New Orders Volume | -9 | -6 | -3 | 5 | 8 | 1 | 0 |
Number of Employees | -10 | -19 | -9 | -4 | 5 | -2 | 5 |
Prices Received for Finished Product | -10 | 2 | -2 | 6 | 5 | 4 | 5 |
Expected Conditions in Six Months | 0 | 3 | 3 | 17 | 17 | 10 | 12 |
New Orders Volume | 9 | 13 | 9 | 26 | 26 | 18 | 21 |
Number of Employees | 1 | 3 | 0 | 16 | 18 | 9 | 13 |
Prices Received for Finished Product | 5 | 14 | 14 | 21 | 26 | 24 | 24 |