Kansas City Fed Manufacturing Index Very Strong

Like other regional surveys, the Kansas City manufacturing index is very strong, up 3 points to 29 to easily beat Econoday's consensus for 22. Growth in both orders and backlog orders remains substantial as does growth in employment and production with stress appearing in the workweek which rose 14 points to 24. And a hint of tariff-related pressure comes from raw material inventories which rose 2 points to 19. Prices are elevated though selling prices did ease slightly. Indications are increasingly pointing to a possible breakout for the factory sector which looks to be one of 2018's central strengths.