The Federal Reserve Bank of Kansas City has now released the October Manufacturing Survey and the survey revealed that its manufacturing activity declined slightly in October. It also said that producer expectations for future activity fell considerably but managed to remain slightly positive.
The month-over-month composite index was -4 in October. While this was down from 2 in September and down from 8 in August, this was the district’s lowest reading in over three years. The future new orders index posted its lowest level since May of 2009, and the future employment index dropped to a three-year low.
Today’s survey showed that factories pulled back in the tenth district for the first time in quite a while. Many firms are attributing the impact of the uncertain political and fiscal situation. The encouraging part of the report is that factories appear to be keeping their capital spending plans for early next year.
Generally speaking this is not a market moving survey.
JON C. OGG