US Factory Activity Index Inches Up in February

The transcript discusses the current state of manufacturing, highlighting a slight contraction with a 47.7 index, and a significant rise in prices paid to 51.3, which is not favorable for the Fed's disinflationary goals. Commodity prices have increased, impacting the manufacturing sector. Employment in manufacturing shows a minor decline, and inventories remain stable, indicating no major overhang. The Fed is closely monitoring these developments, especially the price changes.

What was the unexpected change in the prices paid index?

• It increased to 51.3

• It decreased to 44.5

• It dropped to 40.0

• It remained stable at 47.7

What does a manufacturing index below 50 indicate?

• Contraction in the manufacturing sector

• Stability in the manufacturing sector

• Growth in new orders

• Expansion in the manufacturing sector

How did new orders and production figures change?

• New orders increased, production decreased

• Both remained below 50

• Both decreased significantly

• Both increased above 50

What is the significance of employment figures being just below 50?

• It means employment is stable

• It indicates a major increase in employment

• It suggests a slight contraction in employment

• It shows a significant drop in employment

What is the current situation with inventories according to the transcript?

• There is little change in inventories

• Inventories are significantly decreasing

• Inventories are rapidly increasing

• There is a major inventory overhang