Federal Reserve Manufacturing Reports Mixed in June

Manufacturing Indexes were reported from four Federal Reserve districts in the past two weeks with mixed results. Manufacturing surveys were released from Kansas City, Philadelphia, Richmond and Dallas.

The survey results from Kansas City were the most positive of the four, returning to a positive reading for its composite index for the first time in eighteen months. The regional factory activity index posted at 2, up from negative readings in April and May. Stabilizing energy prices gave a boost to manufacturing activity in June. The production index surged from -11 to 12, along with considerable increases for shipments, new orders, and order backlogs. The future composite index gained 3 points to post at 7 for the month and individual readings were generally solid. Capital spending and new export orders climbed higher while the future production index was unchanged. Future shipments and new order indexes fell slightly and future inventory indexes dropped further into negative territory.