Another Sharp Revival for a Fed Manufacturing Index

It won’t move markets, but the Kansas City Fed manufacturing U-turn will add to the positive part of the economic backdrop. Among the sub-indexes that drove the improvement is new orders, which is back to where it was in February before the shutdowns hit.

With this sharp turn, that makes it four regional Fed manufacturing indexes in a row showing a strong revival. Past recessions have been on the way out when the nadir was put in for these indexes. However, this time may be different, as it’s a virus-caused recession rather than a business-cycle phenomenon.