July 25, 2019 / 3:59 PM / 3 months ago

Kansas City factory index hits near three-year low in July

(Reuters) - The Kansas City Federal Reserve said on Thursday its gauge on regional manufacturing activity slipped into negative territory for the first time in nearly three years due to trade worries and softening demand.

The regional central bank’s composite manufacturing index dipped to -1 in July, which was the lowest level since -2 in August 2016. It was zero in June.

“Regional factory growth remained basically flat this month, and a number of firms noted increased uncertainty because of trade concerns and weaker domestic demand,” Kansas City Fed economist Chad Wilkerson said in a statement.

“However, nearly 80% of manufacturing contacts reported confidence in their local economy,” Wilkerson said.

The survey’s six-month outlook gauge was 9, down from 11 in June.

The Kansas City Fed serves Kansas, Colorado, Nebraska, Oklahoma and Wyoming, and parts of Missouri and New Mexico.

On Tuesday, the Richmond Fed said its regional factory barometer took a record drop in July to its lowest level since January 2013.

On the other hand, regional manufacturing gauges from the New York and Philadelphia central banks rebounded this month from steep declines in June.

(Graphic: Regional Fed factory indexes - tmsnrt.rs/2XYNy6E)

Reporting by Richard Leong in New York; Editing by Matthew Lewis

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