Manufacturing growth slows to near zero in Fed's Kansas City district

Manufacturing expansion plunges from 14 to 1 in a single month. Trend of manufacturing slowdown is consistent with reports from other Federal Reserve districts.

By , Guest blogger

  • close
    Manufacturing growth in the Federal Reserve's Kansas City district fell to almost zero last month.
    View Caption

The Federal Reserve Bank of Kansas City, like other district FRBs (New York, Philadelphia, Richmond and Dallas), tracks its region’s manufacturing activity by surveying a number of important indicators such as general activity, production, shipments, orders, employment and prices for raw materials and finished products.

The latest results are indicating that the manufacturing expansion slowed significantly falling to a near contraction level of 1 from a level of 14 a month earlier while the employee index declined to 9 and the prices paid for raw materials declined to 54.

The most notable declines leading the weakness were seen in the volume and backlog of orders and volume of shipments and the production index.

Recommended: 3 views on whether US states should require voter ID

It's important to note that these declines are largely consistent with similar trends seen in other regional manufacturing surveys including the Philly Fed Business Outlook Survey and the Richmond Feds Survey of Manufacturing.

The chart (above) plots the seasonally adjusted Composite index since 2001 with the solid red line indicating the threshold between expansion and contraction.

Add/view comments on this post.

--------------------------

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here.To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.

Share this story:

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...