Manufacturing activity in the Federal Reserve Bank of Kansas City's region "fell again in January," according to the bank's monthly manufacturing survey, released Thursday.
"We saw another moderate drop in regional factory activity in January, marking the eleventh straight month of slight to moderate declines," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "However, firms remained optimistic that conditions would improve slightly in coming months."
The January survey uses new seasonal adjustment factors, which could result in revisions to prior numbers.
The composite index remained to negative 9 in January, while the production index held at negative 8, volume of shipments stayed at negative 7, the volume of new orders index sank to negative 27 from negative 6, and the backlog of orders index dropped to negative 36 from negative 4. The new orders for exports index reversed to positive 1 from negative 1 and the supplier delivery time index slid to negative 2 from positive 2.
The number of employees index increased to negative 7 from negative 19, while the average employee workweek index dipped to negative 7 from negative 4. The prices received for finished product index widened to negative 15 from negative 7, while the prices paid for raw materials index slid to negative 14 from negative 13.
As for the inventories indexes, materials rebounded to negative 2 from negative 15, while the finished goods crept to negative 9 from negative 17.
In projections for six months from now, the composite index dipped to 5 from 6, and the production index slipped to 14 from 19. The shipments index rose to 18 from 14, while new orders dipped to 13 from 14, and the backlog of orders index dropped to negative 2 from positive 4. The new orders for exports index gained to 2 from 1, and the supplier delivery time index declined to negative 2 from zero.
The number of employees index was at 5, up from 3, while the average employee workweek index dropped to negative 8 from positive 4. The prices received for finished product index fell to negative 6 from zero, and the prices paid for raw materials declined to negative 4 from positive 14. The capital expenditures index was at negative 1, down from positive 5 the prior month.
As for the inventories indexes, materials narrowed to negative 6 from negative 8, while the finished goods index slipped to negative 13 from negative 9.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
