Manufacturing activity in the Federal Reserve Bank of Kansas City's region "declined further in April, although producers' expectations improved slightly from last month," according to the bank's monthly manufacturing survey, released Thursday.
"Regional factories had their worst month in quite some time, as exports continued to drop and conditions worsened among producers of oil and gas-related goods," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "However, a positive development was a decline in supplier delivery times, which had been rising due to West Coast port disruptions."
The composite index slipped to negative 7 in April from negative 4 in March, while the production index remained negative 2, volume of shipments fell to negative 7 from zero, the volume of new orders index narrowed to negative 12 from negative 20, and the backlog of orders index widened to negative 25 from negative 21. The new orders for exports index slid to negative 12 from negative 9 and the supplier delivery time index fell to negative 6 from positive 3.
The number of employees index decreased to negative 18 from negative 2, while the average employee workweek index gained to negative 10 from negative 17. The prices received for finished product index slid to negative 10 from negative 6, while the prices paid for raw materials index improved to negative 7 from negative 12.
As for the inventories indexes, materials rose to positive 5 from negative 1, while the finished goods crept to negative 1 from negative 2.
In projections for six months from now, the composite index climbed to 6 from 4, and the production index inched up to 17 from 16. The shipments index fell to 16 from 20, while new orders surged to 21 from 6, and the backlog of orders index grew to 13 from 5. The new orders for exports index reversed to negative 6 from positive 4, and the supplier delivery time index grew to 8 from 5.
The number of employees index was at negative 2, down from positive 7, while the average employee workweek index decreased to negative 5 from positive 1. The prices received for finished product index slid to 8 from 12, and the prices paid for raw materials dropped to 9 from 24. The capital expenditures index was at 10, up from 2 the prior month.
As for the inventories indexes, materials slipped to negative 14 from negative 13, while the finished goods index climbed to negative 2 from negative 9.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
