Manufacturing activity in the Federal Reserve Bank of Kansas City's region "expanded at a slightly faster pace in November, and producers' expectations for future activity increased further" in November, according to the bank's monthly manufacturing survey, released Thursday.
"Regional factory growth improved somewhat in November, although many contacts reported that the cost to retain or hire quality employees is rising," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "The majority of firms expected activity to improve considerably in the next six months."
The composite index climbed to 7 in November from 4 in October, while the production index tripled to 9 from 3, volume of shipments grew to 7 from zero, the volume of new orders index declined to 1 from 2, and the backlog of orders index rebounded to positive 4 from negative8. The new orders for exports index reversed to positive 8 from negative 9 and the supplier delivery time index rose to 7 from 4.
The number of employees index increased to 9 from 6, while the average employee workweek index gained to positive 1 from negative 3. The prices received for finished product index rose to 6 from zero, while the prices paid for raw materials index decreased to 12 from 17.
As for the inventories indexes, materials gained to 9 from 4, while the finished goods reversed to positive 4 from negative 5.
In projections for six months from now, the composite index advanced to 22 from 17, and the production index jumped to 34 from 23. The shipments index gained to 32 from 28, while new orders slipped to 24 from 26, and the backlog of orders index grew to 19 from 14. The new orders for exports index increased to 9 from 8, and the supplier delivery time index held at 7.
The number of employees index was at 31, up from 16, while the average employee workweek index rebounded to positive 13 from negative 3. The prices received for finished product index rose to 23 from 20, and the prices paid for raw materials dropped to 33 from 38. The capital expenditures index was at 15, off from 21 the prior month.
As for the inventories indexes, materials rose to 14 from 13, while the finished goods index slipped to 6 from 12.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
