KC Fed manufacturing index -5 vs -9 prior

• Manufacturing index -5 vs -9 prior
• Composite index -5 vs -5 prior

Comments in the report:

“Couldn’t ship freezables many days in February, due to cold, We have a warehouse full of orders shipping this week.”

“Capital
Equipment cost that are imported are a huge concern for us and the type
of capital equipment we purchase is not produced in the USA for many
years.”

“Markets we serve [machinery manufacturing] are down 30% for quarters 1 and 2 2025 vs quarters 1 and 2 2024.”

“The
second calendar quarter is seasonally the worst. The last half of 2024
was not good, but seeing uptick in early 2025 and optimism for the year.
Foreign dumping is still a problem.”

“We
are in a comprehensive evaluation of all input costs and
labor/production efficiencies. Based on the outcome of this research we
will adjust pricing accordingly.”

“Material Costs continue to rise. Several suppliers increasing price after the beginning of the year.”

“This is a time of uncertainty for manufacturers, very difficult to make business plans.”

“Costs
in specific categories/commodities are going up significantly and
quickly. Big changes since the first of the year already. We will see
continued/accelerated inflation on select goods/categories. We’ll have
to pass it along – question is will consumers pay/impact on demand?”

“We cannot absorb the cost increases. We have to pass those along.”

“We
will scale back rather than take any hit to profit margin. We are
expecting significant issues with payment and credit in next year and
building cash margin to absorb bankruptcies and flailing business.”

This article was written by Adam Button at www.forexlive.com.