from Wolf Street:
The manufacturing survey for March released today by the Kansas City Fed isn’t the most important manufacturing survey in the US. It covers the Tenth Federal Reserve District: the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma, and Wyoming; and the northern half of New Mexico. Not exactly large centers of manufacturing.
So the fact that the index plunged in March, after having been in growth mode for over a year, doesn’t say that much about the state of the overall US economy, which is mostly a service economy. It doesn’t speak volumes about US manufacturing either, though the plunge parallels other recent data. But the reasons cited for the plunge by the people who’re fighting it out on a daily basis in the trenches of American business are important – and we have seen similar reasons cited by the Dallas Fed.
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