Global| Jul 24 2014Kansas City Fed Factory Sector Activity and Pricing Power Indexes Recover M/M
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Reserve Bank of Kansas City reported that its July Composite index of 10th District factory sector activity improved to 9 and made up most of its decline to 6 during June. The latest figure remained in the range of [...]
The Federal Reserve Bank of Kansas City reported that its July Composite index of 10th District factory sector activity improved to 9 and made up most of its decline to 6 during June. The latest figure remained in the range of readings since earlier this year but improved versus the lows of early 2013. The composite index is an average of the production, new orders, employment, supplier delivery time and raw materials inventory indexes. Most of these series have been range-bound following improvement late in 2013. The prices paid index recovered moderately but remained in the range of the last nine months.
The expectations reading also improved m/m but it's been trending lower for the last six months. Nevertheless, it remained above the current conditions index and thus suggests future improvement in business conditions. Most of the component series moved lower but the employment, employee workweek, raw materials prices and capital expenditures series have been trending higher.
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) | Jul | Jun | May | Jul '13 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Conditions Versus One Month Ago (% Balance) | 9 | 6 | 10 | 5 | 0 | 4 | 9 |
| New Orders Volume | 12 | 8 | 11 | 5 | 1 | 0 | 5 |
| Number of Employees | 8 | 1 | 10 | -1 | -2 | 5 | 11 |
| Prices Received for Finished Product | 7 | 2 | 14 | 1 | 3 | 5 | 12 |
| Expected Conditions in Six Months | 15 | 12 | 13 | 7 | 10 | 12 | 16 |
| New Orders Volume | 24 | 14 | 22 | 19 | 18 | 21 | 24 |
| Number of Employees | 23 | 14 | 16 | 7 | 9 | 13 | 17 |
| Prices Received for Finished Product | 25 | 28 | 32 | 24 | 24 | 24 | 29 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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