Manufacturing activity in the Federal Reserve Bank of Kansas City's region "declined further" in February, according to the bank's monthly manufacturing survey, released Thursday.
"Factories reported a slightly larger decline in February than in previous months," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "Energy-related firms generally had a negative outlook, but firms overall remained slightly optimistic about future factory activity."
The composite index dipped to negative 12 in February from negative 9 in January, while the production index held at negative 8, volume of shipments slid to negative 11 from negative 7, the volume of new orders index narrowed to negative 15 from negative 27, and the backlog of orders index climbed to negative 17 from negative 36. The new orders for exports index reversed to negative 6 from positive 1 and the supplier delivery time index rose to zero from negative 2.
The number of employees index decreased to negative 20 from negative 7, while the average employee workweek index fell to negative 14 from negative 7. The prices received for finished product index widened to negative 17 from negative 15, while the prices paid for raw materials index improved to negative 11 from negative 14.
As for the inventories indexes, materials dropped to negative 16 from negative 2, while the finished goods fell to negative 14 from negative 9.
In projections for six months from now, the composite index dipped to 4 from 5, and the production index gained to 16 from 14. The shipments index rose to 20 from 18, while new orders grew to 15 from 13, and the backlog of orders index dropped to negative 6 from negative 2. The new orders for exports index fell to negative 1 from positive 2, and the supplier delivery time index held at negative 2.
The number of employees index was at 3, down from 5, while the average employee workweek index increased to positive 1 from negative 8. The prices received for finished product index narrowed to negative 2 from negative 6, and the prices paid for raw materials reversed to positive 6 from negative 4. The capital expenditures index was at negative 9, down from negative 1 the prior month.
As for the inventories indexes, materials widened to negative 10 from negative 6, while the finished goods index slipped to negative 21 from negative 13.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
