Manufacturing activity in the Federal Reserve Bank of Kansas City's region " fell slightly in December, but producers' expectations for future activity improved modestly," according to the bank's monthly manufacturing survey, released Friday.

"The drop in regional factory activity appears like it will be temporary, and was at least partly driven by bad weather," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "Firms remain generally optimistic about the first half of 2014, despite continued uncertainty about fiscal policy and regulations."

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