Manufacturing activity in the Federal Reserve Bank of Kansas City's region "grew at a modest pace, and producers' optimism for future activity remained solid" in October, according to the bank's monthly manufacturing survey, released Thursday.
"Regional factory growth remained sluggish in October, weighed down by weak production in agriculture-related sectors," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "However, firms' capital spending plans remained solid."
The composite index slipped to 4 in October from 6 in September, while the production index dropped to 3 from 12, volume of shipments fell to zero from 14, and the volume of new orders index declined to 2 from 5, and the backlog of orders index widened to negative 8 from negative 6. The new orders for exports index widened to negative 9 from negative 1 and the supplier delivery time index slid to 4 from 8.
The number of employees index dipped to 6 from 7, while the average employee workweek index reversed to negative 3 from positive 2. The prices received for finished product index dipped to zero from 2, while the prices paid for raw materials index decreased to 17 from 20.
As for the inventories indexes, materials gained to 4 from zero, while the finished goods reversed to negative 5 from positive 3.
In projections for six months from now, the composite index held at 17, and the production index slipped to 23 from 34. The shipments index dropped to 28 from 36, while new orders remained at 26, and the backlog of orders index declined to 14 from 18. The new orders for exports index increased to 8 from zero, and the supplier delivery time index slid to 7 from 11.
The number of employees index was at 16, up from 13, while the average employee workweek index dipped to negative 3 from positive 4. The prices received for finished product index fell to 20 from 26, and the prices paid for raw materials dipped to 38 from 39. The capital expenditures index was at 21, up from 20 the prior month.
As for the inventories indexes, materials rose to 13 from 2, while the finished goods index climbed to 12 from 6.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
