KC Fed Manufacturing Survey Hits Record Low

The Federal Reserve Bank of Kansas City’s month manufacturing survey examining the region had its lowest reading in its history since launching in 1994.

“Regional factory activity continued to decline in April, with our composite index falling to the lowest level in survey history as firms continued to be negatively impacted by COVID-19,” said Chad Wilkerson, vice president and economist at the bank. “Many firms also reported employment changes in response to coronavirus.”

The month-over-month index was -30 in April, down from -17 in March. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. The biggest drops were in durable goods, such as primary and fabricated metals. There was also a decrease in food and beverage manufacturing as well.

Read the full report here.