Manufacturing activity in the Federal Reserve Bank of Kansas City's region "declined again in July but less so than in previous months," according to the bank's monthly manufacturing survey, released Thursday.
"Our headline index was closer to zero than in May or June but was still negative, indicating further contraction in regional factory activity," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "However, firms expect a modest pickup in activity in coming months."
The composite index climbed to negative 7 in July from negative 9 in June, while the production index improved to negative 5 from negative 21, volume of shipments grew to negative 2 from negative 15, the volume of new orders index widened to negative 6 from negative 3, and the backlog of orders index narrowed to negative 14 from negative 16. The new orders for exports index slid to negative 10 from negative 5 and the supplier delivery time index rose to positive 2 from negative 1.
The number of employees index decreased to negative 19 from negative 9, while the average employee workweek index slipped to negative 18 from negative 13. The prices received for finished product index reversed to positive 2 from negative 2, while the prices paid for raw materials index declined to 8 from 13.
As for the inventories indexes, materials rose to negative 7 from negative 10, while the finished goods remained negative 6.
In projections for six months from now, the composite index held at 3, and the production index slipped to 5 from 11. The shipments index fell to 6 from 10, while new orders gained to 13 from 9, and the backlog of orders index dipped to 3 from 5. The new orders for exports index rose to 2 from zero, and the supplier delivery time index fell to negative 1 from positive 8.
The number of employees index was at 3, up from zero, while the average employee workweek index widened to negative 5 from negative 3. The prices received for finished product index remained 14, and the prices paid for raw materials dropped to 23 from 33. The capital expenditures index was at 1, down from 13 the prior month.
As for the inventories indexes, materials bounced to negative 5 from negative 13, while the finished goods index climbed to negative 3 from negative 11.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
