Thursday, April 23, 2020

Kansas City Fed: "Tenth District Manufacturing Activity Decreased Further" in April, Lowest Reading on Record

by Calculated Risk on 4/23/2020 11:00:00 AM

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

Tenth District manufacturing activity decreased further to the lowest reading in survey history (since 1994), while expectations for future activity improved but remained slightly negative. Month-over-month price indexes declined again in April, but District firms expected prices to rise slightly in the next six months.

The month-over-month composite index was -30 in April, the lowest composite reading in survey history, and down considerably from -17 in March and 5 in February. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. The decrease in district manufacturing activity was steepest at durable goods factories such as primary and fabricated metals, and activity at non-durable goods plants including food and beverage manufacturing declined as well. All month-over-month indexes dropped further in April except for supplier delivery time which continued to increase. Year-over-year factory indexes also decreased again in April, and the composite index fell from -14 to -30. The future composite index improved from -19 April, but remained slightly negative at -6.
emphasis added
All of the regional surveys for April have been very weak.