Manufacturing activity in the Federal Reserve Bank of Kansas City's region "slowed slightly, but producers' expectations for future factory remained solid" in August, according to the bank's monthly manufacturing survey, released Thursday.
"Growth eased a bit from last month's pace," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "Still, August represented the eighth straight month of expansion in the region, and plant managers remained generally optimistic."
The composite index slipped to 3 in August from 9 in July, while the production index dropped to 4 from 11, volume of shipments fell to 2 from 14, and the volume of new orders index declined to 6 from 12, and the backlog of orders index narrowed to negative 5 from negative 6. The new orders for exports index widened to negative 7 from negative 6 and the supplier delivery time index slid to 4 from 5.
The number of employees index declined to negative 4 from positive 8, while the average employee workweek index improved to negative 1 from negative 3. The prices received for finished product index dipped to 6 from 7, while the prices paid for raw materials index increased to 20 from 19.
As for the inventories indexes, materials dropped to 5 from 9, while the finished goods reversed to positive 9 from negative 3.
In projections for six months from now, the composite index grew to 17 from 15, and the production index gained to 25 from 23. The shipments index dropped to 20 from 28, while new orders rose to 25 from 24, and the backlog of orders index climbed to 15 from 11. The new orders for exports index increased to 9 from 6, and the supplier delivery time index doubled to 12 from 6.
The number of employees index was at 15, down from 23, while the average employee workweek index dipped to 12 from 13. The prices received for finished product index fell to 21 from 25, and the prices paid for raw materials slid to 43 from 46. The capital expenditures index was at 16, down from 25 the prior month.
As for the inventories indexes, materials rose to positive 7 from negative 1, while the finished goods index climbed to positive 8 from negative 2.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
