Thursday, February 25, 2016

Kansas City Fed: Regional Manufacturing Activity "declined further" in February

by Bill McBride on 2/25/2016 11:00:00 AM

From the Kansas City Fed: Tenth District Manufacturing Activity Declined Further

The Federal Reserve Bank of Kansas City released the February Manufacturing Survey today. According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City, the survey revealed that Tenth District manufacturing activity declined further.

“Factories reported a slightly larger decline in February than in previous months,” said Wilkerson. “Energy-related firms generally had a negative outlook, but firms overall remained slightly optimistic about future factory activity.”
Tenth District manufacturing activity declined further in February, while producers’ expectations for future activity remained slightly positive. Price indexes were mixed, but most remained in negative territory.

The month-over-month composite index was -12 in February, its lowest level since 2009, down from -9 in January and December. ... The employment index dropped from -15 to -26, its lowest level in nearly six years. The new orders for exports index fell from -4 to -13, while the capital expenditures index remained stable but weak.
emphasis added
The Kansas City region continues to be hit hard by lower oil prices and the stronger dollar.