Manufacturing activity in the Federal Reserve Bank of Kansas City's region "moderated slightly after rising to a two-year high in March, but producers' expectations for future factory activity climbed higher," according to the bank's monthly manufacturing survey, released Thursday.
"Regional factory expansion was not quite as strong in April as in March, when better weather provided a boost," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "But April's numbers were otherwise the best in nearly two years, and firms were generally optimistic."
The composite index slipped to 7 in April from 10 in March, while the production index slumped to 12 from 22, volume of shipments dipped to 14 from 16, and the volume of new orders index slid to 9 from 13, and the backlog of orders index gained to positive 4 from negative 1. The new orders for exports index fell to zero from 6, and the supplier delivery time index rose to 11 from 5.
The number of employees index grew to 3 from zero, while the average employee workweek index rose to 6 from 3. The prices received for finished product index dropped to 2 from 10, while the prices paid for raw materials index increased to 21 from 16.
As for the inventories indexes, materials slipped to negative 1 from positive 8, while the finished goods held at 2.
In projections for six months from now, the composite index jumped to 21 from 11, and the production index climbed to 38 from 28. The shipments was up to 37 from 25, while new orders grew to 33 from 30, and the backlog of orders index climbed to 20 from 9. The new orders for exports index rose to 7 from 4, and the supplier delivery time index gained to 11 from 2.
The number of employees index was at 22, up from 2, while the average employee workweek index increased to 12 from 5. The prices received for finished product index grew to 31 from 21, and the prices paid for raw materials rose to 46 from 38. The capital expenditures index was at 21, up from 9 the prior month.
As for the inventories indexes, materials rose to positive 1 from negative 8, while the finished goods index climbed to zero from negative 5.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
