The Kansas City Fed's Manufacturing Production Index fell to -7 in December 2019 from -5 in the previous month, well below market forecasts of +2. The composite index, an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes, dropped to -8 from -3 in November, driven by weak activity at durable goods plants, especially from declines in: wood products, nonmetallic mineral products, primary metal, fabricated metal products, machinery, and computer and electronic products manufacturing. The shipments index turned negative and the production, new orders, order backlog, and employment indexes declined further. Aside from the index for raw materials prices, only the supplier delivery time index remained slightly positive. Kansas Fed Manufacturing Index in the United States averaged 7.96 points from 2001 until 2019, reaching an all time high of 37 points in March of 2017 and a record low of -32 points in November of 2008.
Kansas Fed Manufacturing Index in the United States is expected to be -4.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations.