Kansas City Fed Sees Dip In Manufacturing Activity

Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “declined somewhat in March, and firms’ expectations for future factory activity weakened but still called for modest overall expansion in coming months,” according to the bank’s monthly manufacturing survey released yesterday. “Price pressures intensified due to higher raw materials and transportation costs, and producers indicated more price pass-through than in recent months.”

The production index held at negative 5 in March, the volume of shipments index also was flat at negative 5, the volume of new orders index decreased to negative 8 from positive 6, and the backlog of orders index fell to negative 5 from zero.

The number of employees index slipped to negative 10 from negative 5 and the average employee workweek index dipped to negative 5 from negative 3. The prices received for finished product index was at 23, up from 13 in February, while the prices paid for raw materials index rose to 64 from 58.

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