Manufacturing activity in the Federal Reserve Bank of Kansas City's region "was slightly positive, and although producers' expectations moderated somewhat they remained at solid levels overall," according to the bank's monthly manufacturing survey, released Thursday.
"The story in February was similar to January," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "Regional factory activity was held back somewhat by unusually harsh weather, but still managed to grow modestly."
The composite index dipped to 4 in February from 5 in January, while the production index improved to positive 3 from negative 8, volume of shipments grew to 10 from 3, and the volume of new orders index held at 5, and the backlog of orders index slipped to negative 4 from negative 1. The new orders for exports index dropped to negative 1 from positive 4, and the supplier delivery time index fell to zero from positive 9.
The number of employees index slid to 3 from 11, while the average employee workweek index grew to positive 1 from negative 6. The prices received for finished product index dipped to 7 from 8, while the prices paid for raw materials index decreased to 16 from 19.
As for the inventories indexes, materials climbed to 10 from 6, while the finished goods remained at 3.
In projections for six months from now, the composite index fell to 11 from 26, and the production index dropped to 24 from 45. The shipments slumped to 24 from 47, while new orders sank to 23 from 35, and the backlog of orders index declined to 15 from 22. The new orders for exports index slid to 5 from 13, and the supplier delivery time index decreased to 2 from 10.
The number of employees index was at 6, off from 29, while the average employee workweek index reversed to negative 1 from positive 9. The prices received for finished product index slid to 25 from 30, and the prices paid for raw materials fell to 35 from 47. The capital expenditures index was at 24, down from 26 the prior month.
As for the inventories indexes, materials sank to negative 1 from positive 9, while the finished goods index improved to positive 6 from negative 1.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
