KC Fed manufacturing index 28 vs 46 prior

• Prior was 46
• Composite 25 vs 37 prior
• New orders 10 vs 33 prior
• Prices paid 83 vs 81 prior
• Six month index 34 vs 41 prior

“The pace of regional factory growth eased somewhat but remained strong,” said Chad Wilkerson, vice president and economist at the  Federal Reserve  Bank of Kansas City. “Firms continued to report issues with higher input prices, increased supply chain disruptions, and labor shortages. However, firms were optimistic about future activity and reported little impact from higher interest rates.”

Some comments in the report:

“It is extremely frustrating to have a record backlog and be unable to execute due to supply chain issues.”

“Product for our production process is becoming increasingly difficult to obtain. Being quoted ten to eleven weeks delivery with that being a guess at best.”

“Most of our product is sold internationally. Clients in China, Europe, and South America are worried about Ukraine war, Covid lockdowns in China,  inflation  and now higher dollar valuation.”