Manufacturing activity in the Federal Reserve Bank of Kansas City's region "continued to expand moderately with strong expectations for future activity" in January, according to the bank's monthly manufacturing survey, released Thursday.
"We had another solid composite index reading in January, and firms' expectations for future activity were the highest in more than twelve years," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.
The January survey incorporates new seasonal adjustment factors.
The composite index held at 9 in January, while the production index grew to 20 from 18, volume of shipments climbed to 20 from 8, the volume of new orders index gained to 20 from 5, and the backlog of orders index increased to 14 from 4. The new orders for exports index slid to negative 5 from negative 4 and the supplier delivery time index decreased to 4 from 7.
The number of employees index dipped to 6 from 8, while the average employee workweek index tripled to 9 from 3. The prices received for finished product index fell to zero from 10, while the prices paid for raw materials index fell to 24 from 28.
As for the inventories indexes, materials dropped to negative 3 from positive 4, while the finished goods declined to negative 4 from zero.
In projections for six months from now, the composite index grew to 27 from 17, and the production index increased to 50 from 29. The shipments index rose to 47 from 28, while new orders gained to 41 from 34, and the backlog of orders index soared to 35 from 25. The new orders for exports index rose to 4 from 3, and the supplier delivery time index held at 5.
The number of employees index was at 31, up from 11, while the average employee workweek index increased to 22 from 14. The prices received for finished product index remained at 21, and the prices paid for raw materials rose to 38 from 37. The capital expenditures index was at 19, after a 9 reading the prior month.
As for the inventories indexes, materials grew to 7 from 4, while the finished goods index climbed to 7 from 1.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
