Manufacturing activity in the Federal Reserve Bank of Kansas City's region "expanded at a slower pace, but producers' expectations for future activity remained at solid levels" in January, according to the bank's monthly manufacturing survey, released Thursday.
"We saw weaker activity in some energy sector-related manufacturing in January, and that pulled the overall index down somewhat," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "But firms still reported modest overall growth in regional factory activity."
The composite index slipped to 3 in January from 8 in December, while the production index dropped to negative 2 from positive 7, volume of shipments fell to negative 5 from positive 8, the volume of new orders index declined to negative 8 from positive 14, and the backlog of orders index slumped to negative 20 from positive 5. The new orders for exports index slid to negative 7 from zero and the supplier delivery time index rose to 10 from 5.
The number of employees index decreased to zero from 8, while the average employee workweek index declined to negative 10 from positive 2. The prices received for finished product index dipped to negative 3 from positive 1, while the prices paid for raw materials index crept to 8 from 7.
As for the inventories indexes, materials gained to 12 from 7, while the finished goods grew to 8 from 6.
In projections for six months from now, the composite index remained at 19, and the production index inched up to 27 from 26. The shipments index gained to 35 from 33, while new orders climbed to 24 from 23, and the backlog of orders index fell to 3 from 17. The new orders for exports index dropped to negative 2 from positive 8, and the supplier delivery time index rose to 12 from 9.
The number of employees index was at 24, down from 30, while the average employee workweek index increased to 7 from 2. The prices received for finished product index slid to 27 from 28, and the prices paid for raw materials dropped to 31 from 36. The capital expenditures index was at 16, off from 25 the prior month.
As for the inventories indexes, materials fell to 7 from 9, while the finished goods index dropped to 7 from 18.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
