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Kansas City Fed Archives - Shopfloor

Kansas City Fed: Manufacturing Outlook Remained Very Optimistic in March, but with Accelerating Costs

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The Kansas City Federal Reserve Bank reported that manufacturing activity continued to expand strongly in March, with the composite index of general business conditions unchanged at 17. Employment remained one of the bright spots in the latest survey (up from 23 to 26), with the index rising to a new all-time high in the survey’s 17-year history. This reflects an ever-tightening labor market, with the average workweek also widening to the best reading in seven years (up from 11 to 15). At the same time, production (down from 21 to 20) and shipments (down from 24 to 12) slowed a little in March, with new orders contracting for the first time since August 2016 (down from 16 to -1). Exports were also softer than desired (down from 2 to 1). Read More

Kansas City Fed: Manufacturing Outlook Remained Very Optimistic, but Firms See Accelerating Costs

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The Kansas City Federal Reserve Bank reported that manufacturing activity continued to expand strongly in February, building on solid growth seen over the past year. The composite index of general business conditions increased from 16 in January to 17 in February, a four-month high. Many of the key underlying data points also reflected faster growth for the month, including new orders (up from 14 to 16), production (up from 16 to 21), shipments (up from 14 to 24), employment (up from 18 to 23) and the average workweek (up from 2 to 11). Forty percent of respondents said new orders increased in February, with 24 percent citing reduced sales. At the same time, exports slowed somewhat but remained positive for the third straight report (down from 6 to 2). Read More

Kansas City Fed: Manufacturing Activity in November Pulled Back Somewhat but “Remained Solid”

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The Kansas City Federal Reserve Bank said that manufacturing activity pulled back somewhat in November but “remained solid,” according to the latest survey data. The composite index of general business conditions declined from 23 in October, a level not seen since March 2011, to 16 in November. Even with some easing, manufacturers in the district are more upbeat today than one year ago, when the headline index was zero. In November, most of the key measures softened a little, while continuing to indicate healthy expansions overall. This included new orders (down from 27 to 22), production (down from 20 to 15), shipments (down from 25 to 20), employment (down from 21 to 16) and the average workweek (down from 12 to 7). On the hiring front, the sample comments once again cited challenges in attracting talent. In terms of downsides in the current data, exports (down from 8 to -2) contracted for the first time in four months, and raw material prices (down from 25 to 24) remained elevated. Read More

Kansas City Fed: Manufacturing Activity Expanded at Fastest Pace Since March 2011

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The Kansas City Federal Reserve Bank said that manufacturing activity expanded at a 79-month high in the latest survey data. The composite index of general business conditions rose from 17 in September to 23 in October, a level not seen since March 2011 and a sign that sentiment has continued to strengthen since the spring. The higher figure in October came largely from a jump in those saying that new orders (up from 10 to 27) and employment (up from 18 to 21) had both accelerated, with the hiring figure also at a 79-month high. The sample comments tended to echo the challenge of finding talent. One respondent said, “Qualified, available and reliable labor (primarily hourly) continues to be the number one issue negatively impacting our potential growth.” Read More

Kansas City Fed: Manufacturing Activity Expanded at a Six-Month High in September

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The Kansas City Federal Reserve Bank said that manufacturing activity expanded at a six-month high in the latest survey data. The composite index of general business conditions edged up from 16 in August to 17 in September, its highest point since February. With that said, the underlying data were mixed. On the positive side, there was continued strength in production (unchanged at 22), shipments (up from 23 to 25) and employment (up from 14 to 18). Exports (up from 4 to 6) also grew modestly. At the same time, new orders (down from 25 to 10) and the average workweek (down from 9 to 7) slowed somewhat in September, even as the pace of growth for each remained decent overall.

Meanwhile, manufacturers continued to be optimistic about the next six months. The forward-looking composite index increased from 23 to 26. Roughly half of those completing the survey expect sales, production and shipments to be higher moving forward, with 37 percent and 32 percent seeing more hiring and capital spending, respectively. Beyond those issues, 49 percent of business leaders also predict a pickup in raw material costs in the months ahead.

Kansas City Fed: Manufacturing Activity Continued to Expand Modestly in July

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The Kansas City Federal Reserve Bank said that manufacturing activity expanded for the eighth straight month and continued to expand at a modest pace in July. With that said, the composite index of general business conditions edged down from 11 in June to 10 in July. The underlying data were mixed. On the positive side, new orders (up from 4 to 10) grew at a faster pace for the month to its best reading since March, and hiring (unchanged at 15) remained strong. Yet, other measures slowed, including production (down from 23 to 4) and the average workweek (down from 7 to 1). Nonetheless, shipments (down from 23 to -2) slipped into contraction for the first time in one year, and exports (down from 3 to -2) dropped for only the second time this year. The sample comments tended to mirror these differing views, ranging from signs of optimism in terms of sales to other respondents citing caution on capital spending and lingering challenges in identifying quality labor candidates. Read More

Kansas City Fed: Manufacturing Activity Continued to Expand Modestly in June

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The Kansas City Federal Reserve Bank said that manufacturing activity expanded for the seventh straight month and continued to expand at a modest pace in June. The composite index of general business conditions increased from 8 in May to 11 in June, its highest reading since March’s six-year high (20). In general, manufacturers report notable improvements in activity relative to this time last year, even as sentiment has pulled back somewhat from stronger numbers at the beginning of 2017. Encouragingly, several of the key indices in May shifted strongly higher, including shipments (up from 3 to 23), production (up from -1 to 23), employment (up from 11 to 15) and the average workweek (up from 1 to 7). A couple of the sample comments cited difficulties in hiring new workers. On the other hand, new orders (down from 9 to 4) and export orders (down from 4 to 3) slowed a little in this report but remained positive indicators. Read More

Kansas City Fed: Manufacturing Activity Expanded for the Sixth Straight Month, up Modestly in May

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The Kansas City Federal Reserve Bank said that manufacturing activity expanded for the sixth straight month even as it pulled back once again from March’s six-year high. The composite index of general business conditions edged higher, up from 7 in April to 8 in May. In general, manufacturers report notable improvements in activity relative to this time last year, despite some easing in activity in many measures in this latest survey. Along those lines, the underlying data points were mixed in May. Growth for new orders (up from 8 to 9), employment (up from 9 to 11) and the average workweek (up from -4 to 1) accelerated slightly for the month; whereas, shipments (down from 11 to 3) and production (down from 12 to -1) each softened. It was the first contraction in output since August. On an encouraging note, exports (unchanged at 4) grew for the fourth consecutive month.   Read More

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