The Kansas City manufacturing index is back in contraction as expected in this corner after a brief wonderland experience last month that took the diffusion index to +1.

Economists don’t guess about this region, so let’s dive into the details straight from the 10th District Fed Report

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The first three columns show the Fed surveys about 100 manufacturing companies. The diffusion index is formed by subtracting the number of companies with a decrease from the number of companies with an increase. The last column is a seasonal adjustment.

The bad news in manufacturing goes on, and on, and on. This is the eighth contraction in nine months.

Mike “Mish” Shedlock