Manufacturing activity in the Federal Reserve Bank of Kansas City's region “declined modestly” in April, according to the bank's monthly manufacturing survey, released Thursday.
“Factories reported a modest decline in activity in April, but expectations for future activity increased to their highest reading of the year,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.
The composite index narrowed to negative 4 in April from negative 6 in March, while the production index improved to negative 8 from negative 14, volume of shipments rose to negative 6 from negative 15, the volume of new orders index remained at negative 2, and the backlog of orders index slipped to negative 18 from negative 15. The new orders for exports index narrowed to negative 4 from negative 10 and the supplier delivery time index reversed to positive 1 from negative 1.
The number of employees index held at negative 12, while the average employee workweek index inched up to negative 9 from negative 13. The prices received for finished product index narrowed to negative 6 from negative 10, while the prices paid for raw materials index improved to positive 4 from negative 10.
As for the inventories indexes, materials climbed to zero from negative 2, while the finished goods fell to negative 11 from zero.
In projections for six months from now, the composite index gained to positive 10 from negative 2, and the production index surged to 25 from 5. The shipments index rose to 27 from 5, while new orders gained to 20 from zero, and the backlog of orders index climbed to negative 1 from negative 10. The new orders for exports index rose to 1 from zero, and the supplier delivery time index reversed to positive 1 from negative 1.
The number of employees index was at 8, up from 1, while the average employee workweek index increased to 8 from 3. The prices received for finished product index increased to 2 from 1, and the prices paid for raw materials grew to 9 from 5. The capital expenditures index was at negative 6, after a negative 9 reading the prior month.
As for the inventories indexes, materials narrowed to negative 5 from negative 13, while the finished goods index widened to negative 13 from negative 10.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
