From the Kansas City Fed: May Survey Results are Flat Following Rapid Growth the Past Two Months
The Federal Reserve Bank of Kansas City released the May Manufacturing Survey today. According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City, the survey revealed that Tenth District manufacturing activity was largely unchanged in May, although new orders for exports continued to grow.
“Factory activity in our region was essentially flat in May following rapid growth in recent months,” said Wilkerson. “But, survey contacts remain generally optimistic about the future and reported plans to continue expanding their workforces.”
Wilkerson said price indexes eased in May with fewer firms planning to raise selling prices and some slowdown in price increases for materials.
The month-over-month composite index was 1 in May, down from 14 in April and 27 in March. … By contrast, the employment index eased but remained well above zero.
There was almost no growth in May, but the good news was price pressures eased a little and employment continued to expand.
The last regional survey (Dallas) will be released on Tuesday May 31st. All of the regional surveys have indicated a sharp slowdown in activity in May, and combined, suggest the ISM manufacturing survey for May will be in the mid-50s (to be released June 1st).