Regional
report after regional report say the same thing: manufacturing is
growing solidly. Kansas City's composite index for November did ease by 7
points to 16 but the slowing is welcome news given the risk that rates
of growth were becoming unsustainably hot. New orders are down 5 points
but are still very strong at 22 as are backlogs at 12. Employment is at
16 and production at 15, again both strong. Price data continue to show
elevated costs for inputs and emerging traction for selling prices.
Inventories are building but at a slowing rate this month and delivery
times are stabilizing, both indications of easing strains on the supply
chain. This week's factory news was highlighted by Thursday's major gain
for the manufacturing component of the industrial production report,
results like this report which point to a strong and increasing
contribution from manufacturing.
Recent History Of This Indicator:
New orders have been leading Kansas City's manufacturing index which
in October jumped to 23 and a new expansion high. The
Econoday consensus
for November is 23.
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