Manufacturing activity in the Federal Reserve Bank of Kansas City's region "slowed somewhat, while producers' expectations for future factory activity showed little change and remained at solid levels" in June, according to the bank's monthly manufacturing survey, released Thursday.
"We saw some moderation in factory growth in June and many contacts mentioned difficulties finding qualified workers," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "However, many respondents noted solid expectations for future months."
The composite index slipped to 6 in June from 10 in May, while the production index dropped to 2 from 14, volume of shipments dipped to 2 from 5, and the volume of new orders index slid to 8 from 11, and the backlog of orders index gained to 9 from zero. The new orders for exports index fell to negative 11 from negative 3, and the supplier delivery time index rose to 10 from 5.
The number of employees index declined to 1 from 10, while the average employee workweek index fell to 7 from 14. The prices received for finished product index slumped to 2 from 14, while the prices paid for raw materials index decreased to 25 from 28.
As for the inventories indexes, materials dipped to 8 from 11, while the finished goods reversed to negative 4 from positive 4.
In projections for six months from now, the composite index fell to 12 from 13, and the production index slipped to 17 from 18. The shipments index dropped to 20 from 24, while new orders slid to 14 from 22, and the backlog of orders index remained at 9. The new orders for exports index increased to 6 from 4, and the supplier delivery time index held at 10.
The number of employees index was at 14, down from 16, while the average employee workweek index decreased to 4 from 10. The prices received for finished product index fell to 28 from 32, and the prices paid for raw materials slid to 49 from 53. The capital expenditures index was at 23, up from 19 the prior month.
As for the inventories indexes, materials rose to 2 from 1, while the finished goods index climbed to 3 from 2.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
