Manufacturing activity in the Federal Reserve Bank of Kansas City's region "continued to decline moderately, similar to the pace of the previous few months," according to the bank's monthly manufacturing survey, released Thursday.
"Survey respondents reported that weak oil and gas activity along with a stronger dollar continued to weigh on regional factories," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "Price indexes also fell after rising in recent months."
The composite index widened to negative 9 in August from negative 7 in July, while the production index slipped to negative 16 from negative 5, volume of shipments fell to negative 15 from negative 2, the volume of new orders index widened to negative 9 from negative 6, and the backlog of orders index slumped to negative 21 from negative 14. The new orders for exports index narrowed to negative 4 from negative 10 and the supplier delivery time index slid to 1 from 2.
The number of employees index increased to negative 10 from negative 19, while the average employee workweek index gained to negative 7 from negative 18. The prices received for finished product index declined to negative 10 from positive 2, while the prices paid for raw materials index reversed to negative 8 from positive 8.
As for the inventories indexes, materials fell to negative 12 from negative 7, while the finished goods dipped to negative 8 from negative 6.
In projections for six months from now, the composite index fell to zero from 3, and the production index slipped to 4 from 5. The shipments index fell to 4 from 6, while new orders dipped to 9 from 13, and the backlog of orders index dropped to negative 13 from positive 3. The new orders for exports index slumped to negative 5 from positive 2, and the supplier delivery time index reversed to positive 1 from negative 1.
The number of employees index was at 1, down from 3, while the average employee workweek index remained at negative 5. The prices received for finished product index declined to 5 from 14, and the prices paid for raw materials dropped to 17 from 23. The capital expenditures index was at negative 2, down from positive 1 the prior month.
As for the inventories indexes, materials slipped to negative 16 from negative 5, while the finished goods index declined to negative 11 from negative 3.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
