Manufacturing in the Kansas City Federal Reserve Bank district expanded at a moderate pace in May, while expectations for future activity increased strongly.
After surges in recent months, partly due to expectations of a changed political climate, the index manufacturing activity has moderated in April and May. Some manufacturers expressed concern over whether the promised pro-business economic proposals will take place.
“After slowing from a rapid rate of growth in February and March, we’ve seen more moderate growth the past two months,” said Chad Wilkerson, vice president and economist for the bank, in a statement. “But firms are about as optimistic about future growth as they’ve ever been.”