Thursday, February 23, 2012

Kansas City Fed Manufacturing Index Soars

Bernanke's newly printed money has found its way to Kansas City.

The composite index measuring manufacturer activity in the Federal Reserve KC district surged to a reading of 13.. Keynesian economic forecasters expected no more than a reading of 9.

Production was healthy at 20 versus 13 the month before. The new orders index eased incrementally to 8 from 9 while the backlog index rose to 13 from 8 in January. Manufacturers are adding to the workforce at a slightly stronger rate as the number of employees index rose to 11 from 9 in January.

The outlook is more favorable as the 6-month out composite gained to 20 in February from 12 the prior month.

“Factories further ramped up activity in February and – despite a drop off in export orders – were more optimistic about future output and hiring than at any time in the past year,” Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City, said.

The Tenth District includes all of Kansas, Colorado, Nebraska, Oklahoma, and Wyoming, the northern half of New Mexico, and the western third of Missouri.

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