The Federal Reserve Bank of Kansas City released its April Manufacturing Survey today and the composite index fell slightly to -5. This is improved from the -10 we saw in February but is relatively the same as last month’s index.
Firms reported optimism on future activity but several reported a deteriorating outlook since earlier in the year. One of the firms survey commented, “Our expectations for future increases have cooled considerably in the last few months. New business opportunities are not coming forth as previously expected. Retailers are making changes in supply as expected, probably driven by more aggressive pricing tactics by incumbent suppliers.”
Tomorrow we will see what the GDP report says for the first quarter this year. The durable goods orders yesterday showed that manufacturing has slowed somewhat over the past few months. The impact of the sequestration and other global concerns are starting to have a real impact.