Manufacturing activity in the Federal Reserve Bank of Kansas City's region "increased moderately" in September, according to the bank's monthly manufacturing survey, released Thursday.
"For the second time in four months we had a positive reading on our composite index," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "This followed 15 straight months of contraction and suggests regional factory activity may be stabilizing."
The composite index reversed to positive 6 in September from negative 4 in August, while the production index surged to positive 15 from negative 7, volume of shipments grew to positive 16 from negative 4, the volume of new orders index climbed to positive 12 from negative 7, and the backlog of orders index gained to zero from negative 4. The new orders for exports index narrowed to negative 4 from negative 10 and the supplier delivery time index rose to reversed to negative 3 from positive 3.
The number of employees index gained to negative 3 from negative 10, while the average employee workweek index climbed to 5 from 4. The prices received for finished product index remained at negative 7, while the prices paid for raw materials index slipped to 2 from 7.
As for the inventories indexes, materials increased to positive 8 from negative 1, while the finished goods climbed to zero from negative 2.
In projections for six months from now, the composite index dipped to 10 from 11, and the production index slipped to 15 from 17. The shipments index held at 17, while new orders gained to 24 from 23, and the backlog of orders index remained at 11. The new orders for exports index rose to 6 from 1, and the supplier delivery time index fell to 5 from 7.
The number of employees index was at 14, up from 12, while the average employee workweek index increased to 7 from zero. The prices received for finished product index decreased to 7 from 17, and the prices paid for raw materials grew to 26 from 17. The capital expenditures index was at 14, after a 5 reading the prior month.
As for the inventories indexes, materials widened to negative 7 from negative 4, while the finished goods index narrowed to negative 5 from negative 8.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
