Manufacturing activity in the Federal Reserve Bank of Kansas City's region "declined modestly" in July, according to the bank's monthly manufacturing survey, released Thursday.
"Factories in our region reported a slight pullback in July following modest expansion in June," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "However, their expectations for future activity continued to increase."
The composite index declined to negative 6 in July from positive 2 in June, while the production index reversed to negative 15 from positive 12, volume of shipments fell to negative 17 from positive 10, the volume of new orders index dropped to negative 5 from positive 4, and the backlog of orders index remained at negative 3. The new orders for exports index widened to negative 7 from negative 1 and the supplier delivery time index rose to 3 from 2.
The number of employees index dipped to negative 5 from negative 4, while the average employee workweek index climbed to 7 from 1. The prices received for finished product index slid to negative 11 from negative 4, while the prices paid for raw materials index slipped to 10 from 12.
As for the inventories indexes, materials decreased to negative 7 from negative 3, while the finished goods reversed to positive 5 from negative 5.
In projections for six months from now, the composite index doubled to 14 from 7, and the production index soared to 25 from 15. The shipments index rose to 18 from 7, while new orders gained to 30 from 12, and the backlog of orders index climbed to 16 from 5. The new orders for exports index rose to 1 from zero, and the supplier delivery time index held at 4.
The number of employees index was at 6, down from 13, while the average employee workweek index increased to positive 7 from negative 2. The prices received for finished product index increased to 13 from 5, and the prices paid for raw materials grew to 17 from 9. The capital expenditures index was at 3, after an 8 reading the prior month.
As for the inventories indexes, materials reversed to positive 4 from negative 7, while the finished goods index climbed to positive 3 from negative 11.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
