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Kansas City Fed Manufacturing Activity grew slightly in February
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Tenth District manufacturing activity was up only slightly in February, while expectations for future activity remained positive but were slightly lower than in previous months. The month-over-month finished goods and raw materials price indexes both eased down in February. Price expectations for the next six months also edged lower.
Factories Report Steady Activity in February
The month-over-month composite index was 1 in February, down from 5 in January and 6 in December. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. Factories expanded durable goods production, particularly machinery and transportation equipment, while manufacturing of more non-durable goods, including food and beverage products, declined. Most month-over-month indexes decreased in February, with production, shipments, and new orders dropping into negative territory. However, the month-over-month employment index expanded moderately. Most year-over-year factory indexes declined from the previous month but remained positive, and the composite index dipped from 31 to 23. Future factory activity expectations continued to drift down, but also remained positive. The future composite index dipped from 18 to 13, the lowest future composite index since late 2016, but the future employment index expanded solidly.
Posted: February 28, 2019 Thursday 11:00 AM