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 remained at a near-contraction level of 8 since last month while the employee index remained flat at 12 and the prices paid for raw materials declined to 24.
The following chart plots the seasonally adjusted Composite index since 2001 with the solid red line indicating the threshold between expansion and contraction.
