Manufacturing activity in the Federal Reserve Bank of Kansas City's region " improved further, and producers' expectations also edged higher after easing last month," according to the bank's monthly manufacturing survey, released Thursday.
"Although some District firms noted weakness in August associated with federal spending cuts and difficulties finding workers, we were encouraged to see another solid gain in our composite index and most of its components," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.
The composite index gained to 8 in August from 6 in July, while the production index remained at 21, volume of shipments slid to 15 from 19, and the volume of new orders index rose to 15 from 5, and the backlog of orders index rose to zero from negative 7. The new orders for exports index improved to 4 from 2, and the supplier delivery time index held at 1.
The number of employees index gained to positive 4 from negative 2, while the average employee workweek index reversed to positive 8 from negative 6. The prices received for finished product index climbed to 5 from zero, while the prices paid for raw materials index increased to 22 from 16.
As for the inventories indexes, materials dropped to zero from 4, while the finished goods rose to 4 from 1.
In projections for six months from now, the composite index grew to 9 from 7, and the production index stayed at 17. The shipments increased to 15 from 12, while new orders decreased to 11 from 20, and the backlog of orders index gained to 6 from zero. The new orders for exports index surged to positive 9 from negative 1, and the supplier delivery time index held at 7.
The number of employees index was at 9, up from 7, while the average employee workweek index dipped to 1 from 2. The prices received for finished product index grew to 27 from 24, and the prices paid for raw materials rose to 45 from 36. The capital expenditures index was at 13, up from 12 the prior month.
As for the inventories indexes, materials improved to zero from negative 13, while the finished goods index jumped to positive 3 from negative 9.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
