Manufacturing activity in the Federal Reserve Bank of Kansas City's region "increased, and producers' expectations were mostly stable at solid levels," according to the bank's monthly manufacturing survey, released Thursday.
"We saw acceleration in regional factory activity in March, to the fastest pace in over two years," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "However, several respondents noted the stronger growth was in part making up for weather-related softness in previous months."
The composite index climbed to 10 in March from 4 in February, while the production index surged to 22 from 3, volume of shipments grew to 16 from 10, and the volume of new orders index gained to 13 from 5, and the backlog of orders index narrowed to negative 1 from negative 4. The new orders for exports index climbed to positive 6 from negative 1, and the supplier delivery time index rose to 5 from zero.
The number of employees index slid to zero from 3, while the average employee workweek index grew to 3 from 1. The prices received for finished product index gained to 10 from 7, while the prices paid for raw materials index remained at 16.
As for the inventories indexes, materials slipped to 8 from 10, while the finished goods dipped to 2 from 3.
In projections for six months from now, the composite index held at 11, and the production index climbed to 28 from 24. The shipments inched up to 25 from 24, while new orders grew to 30 from 23, and the backlog of orders index declined to 9 from 15. The new orders for exports index slid to 4 from 5, and the supplier delivery time index remained at 2.
The number of employees index was at 2, off from 6, while the average employee workweek index reversed to positive 5 from negative 1. The prices received for finished product index slid to 21 from 25, and the prices paid for raw materials rose to 38 from 35. The capital expenditures index was at 9, down from 24 the prior month.
As for the inventories indexes, materials sank to negative 8 from negative 1, while the finished goods index reversed to negative 5 from positive 6.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
