Manufacturing activity in the Federal Reserve Bank of Kansas City's region "improved somewhat, rising above zero for the first time in seven months, and producers' expectations for future activity also increased," according to the bank's monthly manufacturing survey, released Thursday.
The composite index rose to positive 2 in May from negative 5 in April, while the production index increased to 5 from 1, volume of shipments climbed to 8 from 7, and the volume of new orders index jumped to 6 from zero, and the backlog of orders index remained at negative 8. The new orders for exports index narrowed to negative 6 from negative 8, and the supplier delivery time index reversed to positive 5 from negative 4.
The number of employees index declined to negative 7 from negative 3, while the average employee workweek index dipped to negative 9 from negative 7. The prices received for finished product index slid to negative 3 from negative 1, while the prices paid for raw materials index increased to 9 from 7.
As for the inventories indexes, materials surged to zero from negative 17, while the finished goods narrowed to negative 2 from negative 4.
In projections for six months from now, the composite index gained to 11 from 4, and the production index climbed to 16 from 8. The shipments soared to 21 from 10, while new orders doubled to 18 from 9, and the backlog of orders index rose to 9 from 3. The new orders for exports index dipped to 3 from 5, and the supplier delivery time index increased to 13 from zero.
The number of employees index held at 8, while the average employee workweek index rose to positive 1 from negative 7. The prices received for finished product index slid to 23 from 24, and the prices paid for raw materials gained to 43 from 38. The capital expenditures index was at 19, up from 11 the prior month.
As for the inventories indexes, materials increased to positive 1 from negative 7, while the finished goods index rose to zero from negative 10.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
