Manufacturing activity in the Federal Reserve Bank of Kansas City's region “steadied somewhat and was expected to remain largely unchanged heading forward,” according to the bank's monthly manufacturing survey, released Thursday.
“Following six months of composite index readings of worse than -6, this month’s reading of -1 was somewhat encouraging,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “Modest increases in new orders and production nearly offset declines in employment, supplier delivery time, and inventory indexes.”
The composite index narrowed to negative 1 in October from negative 8 in September, while the production index gained to 4 from 1, volume of shipments rose to negative 2 from negative 4, the volume of new orders index reversed to positive 7 from negative 8, and the backlog of orders index narrowed to negative 4 from negative 12. The new orders for exports index widened to negative 10 from negative 3 and the supplier delivery time index rose to negative 2 from negative 6.
The number of employees index increased to negative 3 from negative 7, while the average employee workweek index gained to negative 5 from negative 12. The prices received for finished product index narrowed to negative 3 from negative 7, while the prices paid for raw materials index climbed to zero from negative 7.
As for the inventories indexes, materials rose to negative 12 from negative 20, while the finished goods slid to negative 7 from negative 3.
In projections for six months from now, the composite index improved to negative 1 from negative 12, and the production index jumped to positive 6 from negative 14. The shipments index rose to positive 5 from negative 17, while new orders reversed to positive 7 from negative 7, and the backlog of orders index narrowed to negative 1 from negative 20. The new orders for exports index climbed to zero from negative 7, and the supplier delivery time index dipped to negative 4 from negative 3.
The number of employees index was at positive 6, up from negative 9, while the average employee workweek index soared to positive 1 from negative 15. The prices received for finished product index reversed to positive 8 from negative 5, and the prices paid for raw materials rose to 13 from 6. The capital expenditures index was at negative 9, off from negative 1 the prior month.
As for the inventories indexes, materials gained to negative 19 from negative 25, while the finished goods index improved to negative 10 from negative 15.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
