Manufacturing activity in the Federal Reserve Bank of Kansas City's region " contracted modestly again in January, but factories' production expectations remained relatively optimistic for the months ahead," according to the bank's monthly manufacturing survey, released Thursday.

"Regional factory activity has now edged down for four straight months, as fiscal policy uncertainty continues to weigh on firms' plans," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "On the positive side, expectations for new orders rose quite a bit in January, but hiring and capital spending plans were only modestly positive."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.