Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “declined sharply in October, and firms’ expectations about future factory activity weakened further,” according to the bank’s monthly manufacturing survey released yesterday.
“Price indexes in the survey also fell considerably, though more firms continued to plan price increases heading forward than planned price decreases,” the Fed said.
The production index slumped to negative 23 in October from negative 9 in September, the volume of shipments index declined to negative 20 from negative 8, the volume of new orders index slipped to negative 23 from negative 14, and the backlog of orders index declined to negative 24 from negative 15. The new orders for exports index reversed to negative 6 from positive 4, and the supplier delivery time index decreased to negative 2 from positive 3.
In projections for six months from now, the production index reversed to negative 3 from positive 3. The shipments index slipped to negative 2 from negative 1, while new orders fell to negative 6 from positive 4, and the backlog of orders index remained at zero.
