Manufacturing activity in the Federal Reserve Bank of Kansas City's region "rose just slightly from the previous month, but producers expected activity to pick up moderately in the months ahead" in February, according to the bank's monthly manufacturing survey, released Thursday.
"We saw a further slowing in growth this month, driven in part by weaker factory activity in our energy states," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "The raw materials prices index also fell for the first time in over five years."
The composite index slipped to 1 in February from 3 in January, while the production index climbed to positive 5 from negative 2, volume of shipments rose to positive 7 from negative 5, the volume of new orders index declined to negative 10 from negative 8, and the backlog of orders index narrowed to negative 16 from negative 20. The new orders for exports index slid to negative 13 from negative 7 and the supplier delivery time index rose to 12 from 10.
The number of employees index decreased to negative 4 from zero, while the average employee workweek index gained to positive 1 from negative 10. The prices received for finished product index held at negative 3, while the prices paid for raw materials index dropped to negative 6 from positive 8.
As for the inventories indexes, materials fell to 3 from 12, while the finished goods slid to 3 from 8.
In projections for six months from now, the composite index slipped to 11 from 19, and the production index inched down to 26 from 27. The shipments index fell to 23 from 35, while new orders slumped to 15 from 24, and the backlog of orders index grew to 5 from 3. The new orders for exports index remained at negative 2, and the supplier delivery time index slid to 7 from 12.
The number of employees index was at 14, down from 24, while the average employee workweek index decreased to 4 from 7. The prices received for finished product index slid to 6 from 27, and the prices paid for raw materials dropped to 25 from 31. The capital expenditures index was at 12, off from 16 the prior month.
As for the inventories indexes, materials reversed to negative 7 from positive 7, while the finished goods index dropped to zero from 7.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
