Manufacturing activity in the Federal Reserve Bank of Kansas City's region "rebounded moderately in January, and factories' production expectations continued to climb higher," according to the bank's monthly manufacturing survey, released Thursday.
"We were encouraged to see overall regional factory activity grow in January after dropping last month," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "Production fell slightly in January, which many firms again attributed to weather-related delays, but orders rose and optimism about the future increased."
This survey incorporates new seasonal adjustment factors, so previous indexes may differ from earlier reports.
The composite index reversed to positive 5 in January from negative 3 in December, while the production index narrowed to negative 8 from negative 13, volume of shipments grew to positive 3 from negative 10, and the volume of new orders index rose to 5 from 1, and the backlog of orders index improved to negative 1 from negative 5. The new orders for exports index climbed to positive 4 from negative 6, and the supplier delivery time index gained to positive 9 from negative 2.
The number of employees index jumped to 11 from zero, while the average employee workweek index fell to negative 6 from negative 2. The prices received for finished product index rose to 8 from 2, while the prices paid for raw materials index increased to 19 from 15.
As for the inventories indexes, materials climbed to positive 6 from negative 1, while the finished goods rose to 3 from 1.
In projections for six months from now, the composite index grew to 26 from 15, and the production index increased to 45 from 30. The shipments climbed to 47 from 32, while new orders gained to 35 from 24, and the backlog of orders index rose to 22 from 8. The new orders for exports index surged to 13 from 2, and the supplier delivery time index doubled to 10 from 5.
The number of employees index was at 29, up from 15, while the average employee workweek index gained to 9 from 8. The prices received for finished product index grew to 30 from 18, and the prices paid for raw materials rose to 47 from 27. The capital expenditures index was at 26, up from 12 the prior month.
As for the inventories indexes, materials soared to positive 9 from negative 1, while the finished goods index narrowed to negative 1 from negative 5.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
