Regional factory activity in the Tenth District of the Kansas City Fed declined sharply in January, with production and new orders plunging but prices paid soaring.
The headline index tumbled from -1 to -9 – a contraction was driven more by durable goods manufacturing, particularly nonmetallic mineral and primary metal manufacturers.
That was the 16th straight month without a positive (expansionary) print.
Under the hood it was a bloodbath…
With prices soaring as growth signals weaken…
Comments from respondents were not all upbeat
“Freight due to issues in Suez and Panama canals are already affecting inbound prices. We expect that to increase in coming months. We are currently projecting a minimum cost increase to raw materials of between 5-10% depending on the item.”
“Demand is still weak. More companies are asking for longer payment terms.”
“There is a lot of uncertainty with inflation and demand. We are being optimistic and planning on growth, but we don’t have the visible indicators to support that plan in the market today.”
…and stocks are at record-er and record-er highs and Bidenomics is working!