Kansas City Fed Reports Strong Manufacturing Activity

Manufacturing activity in the Kansas City Fed's district proved very strong this month, at a December composite score of 14 and showing outsized strength for production and slower but more sustainable growth for new orders and backlogs. Capacity measures continue to show pressure with hiring very strong and prices, both for inputs and final goods, on the rise. And delivery times are lengthening sharply. Respondents in the regional factory reports like Kansas City have been reporting about as much strength as they can handle without overheating, a contrast to actual data on the national factory sector where strength is more moderate.