Kansas City Manufacturing Shows Surprising Gain
Apparently not all manufacturing regions are slowing to a crawl. A report from the Kansas City Federal Reserve showed in its regional manufacturing survey some improvement in July. The improvement was very sluggish but it is at least improvement. The…
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Where the sluggish report is harder to use a prediction is that the production index decelerated to 2 in July versus 12 in June. That is substantial. Meanwhile, the report’s new orders component improved to -4 from -7. That is still in the red zone, just ‘less bad’ on a relative basis. Inventories posted a gain as well with the materials index rising to 13 in July from 5 in June. A big boost was seen in the finished goods inventories component, which saw a rise to 9 in July from -2 in June.
Employment showed some gains here as the employment component posted a gain up to 6 in July versus 3 in June.
This came on a day where the broader equity indexes were already higher. That being said, it is at least good to see some good news when the tape has been full of nothing but bad news.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
