Highlights from the March 2016 US KC Fed manufacturing index data report 24 March 2016

• Composite -6 vs -12 prior
• New orders -2 vs -15 prior
• Employment -12 v s-20 prior
• Prices paid -10 vs -11 prior
• Prices rec'd -10 vs -17 prior
• Exports -10 v s-6 prior

This region goes against the positive numbers seen elsewhere, though some components are less rubbish than in Feb. There's little enthusiasm in from respondents.
SELECTED COMMENTS

"Overall activity is a mixed bag. We continue to see declining order activity for customers associated with the oil and gas business. However we are seeing a lot of activity for potential new business opportunities. Companies are shopping around to find the lowest price suppliers to maximize their profit potential in this uncertain market."

"Even though our exports have stayed about the same as last year, those sales are less profitable. We are trying to protect market share but have to do it with lower margins to stay competitive with non-dollar denominated competitors."

"Stocking distributors have reduced the number of days in inventory. They are still requesting extra dating terms while purchasing less. JIT is being squeezed down to reduced shipments and greater length in payment terms. This all equals margin contribution reductions."

"Capital spending remains constrained with little real relief on the horizon."
"Sales force is doing a good job and production is stabilizing."

"Business levels for all categories seem to be dropping including energy, commercial items, automotive."