Kansas City Depression Continues


ECONODAY: Once again minus signs sweep across the Kansas City Fed manufacturing report, coming in at minus 12 for the February headline. New orders improved but remain deeply negative at minus 15 with backlog orders also improving but still at minus 17. Readings on production and shipments show less weakness but not employment where contraction deepened sharply to minus 20. Inventories are going down, which is a positive given the contraction in demand, while prices also continue to go down including selling prices. This is the 12th contraction in a row for this report with only the Dallas Fed, which like Kansas City also covers an energy-dependent sector, posting an even longer and more dismal run. Today's report extends an uninterrupted string of negative regional reports on manufacturing, all for February that cast a cold shadow over strength in today's durable goods report for January...