Manufacturing activity in the Federal Reserve Bank of Kansas City's region "expanded further with continued strong expectations" in February, according to the bank's monthly manufacturing survey, released Thursday.
"This was the highest reading for our month-over-month composite index since June 2011," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "In addition, the future composite index was the highest since our survey switched to a monthly frequency in 2001."
The composite index grew to 14 in February from 9 in January, while the production index fell to 11 from 20, volume of shipments slipped to 16 from 20, the volume of new orders index gained to 26 from 20, and the backlog of orders index increased to 19 from 14. The new orders for exports index climbed to positive 9 from negative 5 and the supplier delivery time index increased to 6 from 4.
The number of employees index soared to 17 from 6, while the average employee workweek index gained to 15 from 9. The prices received for finished product index rose to 1 from zero, while the prices paid for raw materials index grew to 26 from 24.
As for the inventories indexes, materials increased to positive 11 from negative 3, while the finished goods reversed to positive 5 from negative 4.
In projections for six months from now, the composite index grew to 29 from 27, and the production index decreased to 42 from 50. The shipments index fell to 39 from 47, while new orders slid to 36 from 41, and the backlog of orders index slumped to 13 from 35. The new orders for exports index rose to 16 from 5, and the supplier delivery time index grew to 20 from 7.
The number of employees index was at 30, off from 31, while the average employee workweek index decreased to 19 from 22. The prices received for finished product index remained at 21, and the prices paid for raw materials surged to 53 from 38. The capital expenditures index was at 27, after a 19 reading the prior month.
As for the inventories indexes, materials grew to 20 from 7, while the finished goods index climbed to 23 from 7.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
