FX.co ★ Kansas City Fed Manufacturing Index Drops to -3 in July

The Manufacturing Production Index from the Kansas City Federal Reserve declined to -3 in July, a shift from 5 in the previous month, pointing to a downturn in manufacturing activity. This reduction is mainly attributed to a decrease in durable goods output, despite observed improvements in nondurable manufacturing. The data presents a mixed picture: employment showed further decline, moving to -11 from -8, yet shipments and new orders experienced modest increases. Importantly, there was a significant improvement in order backlogs, rising to 30 from -11, which suggests a reduction in production pressures. Looking forward, the future composite index saw a slight decrease to 8 from 9. Nevertheless, manufacturers express cautious optimism, with positive projections for production, new orders, and employment over the ensuing six months.