Manufacturing activity in the Federal Reserve Bank of Kansas City's region “declined at a similar pace as in previous months, while expectations for future activity dropped considerably,” according to the bank's monthly manufacturing survey, released Thursday.
“Survey respondents continued to blame a strong dollar and weak energy activity for declining factory activity,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “This month their future outlook also weakened after holding steady in recent months.”
The composite index narrowed to negative 8 in September from negative 9 in August, while the production index jumped to positive 1 from negative 16, volume of shipments rose to negative 4 from negative 15, the volume of new orders index improved to negative 8 from negative 9, and the backlog of orders index narrowed to negative 12 from negative 21. The new orders for exports index narrowed to negative 3 from negative 4 and the supplier delivery time index slid to negative 6 from positive 1.
The number of employees index increased to negative 10 from negative 19, while the average employee workweek index gained to negative 7 from negative 18. The prices received for finished product index declined to negative 7 from negative 10, while the prices paid for raw materials index climbed to negative 7 from negative 8.
As for the inventories indexes, materials fell to negative 20 from negative 12, while the finished goods gained to negative 3 from negative 8.
In projections for six months from now, the composite index fell to negative 12 from zero, and the production index slipped to negative 14 from positive 4. The shipments index fell to negative 17 from positive 4, while new orders dropped to negative 7 from positive 9, and the backlog of orders index slid to negative 20 from negative 13. The new orders for exports index slumped to negative 7 from negative 5, and the supplier delivery time index reversed to negative 3 from positive 1.
The number of employees index was at negative 9, down from positive 1, while the average employee workweek index declined to negative 15 from negative 5. The prices received for finished product index reversed to negative 5 from positive 5, and the prices paid for raw materials dropped to 6 from 17. The capital expenditures index was at negative 1, up from negative 2 the prior month.
As for the inventories indexes, materials slipped to negative 25 from negative 16, while the finished goods index declined to negative 15 from negative 11.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
