Manufacturing SURGES In The Midwest, KC Fed Hits 9

kansas city, missouri, skyline

Photo: Flickr / photoguyinmo

UPDATE:Manufacturing surged higher in the Midwest, new data from the Federal Reserve Bank of Kansas City shows.

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The headline index increased six points to 9, above expectations for a rise to 5.

“After softening a bit in April, factory activity accelerated in May back to rates of growth similar to what we saw earlier in the year,” Fed economist Chad Wilkerson said in statement. “Price pressures also generally eased.”

Gains in production, shipments, and new orders led the composite index higher, hitting 17, 16, and 10, respectively.

However, hiring plans by the region’s manufacturers slowed slightly, declining four points to 8. 20-six per cent of employers said they were increasing headcount, while 13 per cent reported decreasing payrolls.

Below, key output from the monthly survey.

Chart

Photo: Federal Reserve Bank of Kansas City

Chart

Photo: Federal Reserve Bank of Kansas City

ORIGINAL:

The Federal Reserve Bank of Kansas City is minutes away from releasing its monthly survey of manufacturers, a key gauge of business activity in the Midwest.

Economists polled by Bloomberg forecast the main index increased two points to 5 in May. 

The report covers Kansas, Colorado, Oklahoma, Wyoming, western Missouri, and northern New Mexico. 

The announcement is scheduled for release at 11:00 a.m. 

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