NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “increased further in February, and expectations also climbed higher,” according to the bank’s monthly manufacturing survey, released Thursday.
“Factories further ramped up activity in February and – despite a drop off in export orders – were more optimistic about future output and hiring than at any time in the past year,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.
The composite index increased to 13 in February from 7 in January, while the production index rose to 20 from 13, volume of shipments decreased to 8 from 13, and the volume of new orders index dipped to 8 from 9, and the backlog of orders index improved to 13 from 8. The new orders for exports index slumped to negative 7 from positive 10, and the supplier delivery time index crept to 10 from 8.
The number of employees index grew to 11 from 9, while the average employee workweek index decreased to negative 3 from zero. The prices received for finished product index slid to 11 from 13, while the prices paid for raw materials index decreased to 36 from 42.
As for the inventories indexes, materials increased to positive 14 from negative 4, while the finished goods rose to 6 from zero.
In comparison to the same month a year ago, the composite index climbed to 21 from 15, the production index jumped to 28 from 16. The shipments index climbed to 30 from 13, while new orders increased to 28 from 17, and the backlog of orders index rose to 24 from 13. The new orders for exports index fell to 5 from 12, and the supplier delivery time index gained to 13 from 10.
The number of employees index gained to 17 from 11, while the average employee workweek index rose to 6 from 2. The prices received for finished product index slid to 35 from 38 and the prices paid for raw materials dropped to 57 from 67. The capital expenditures index rose to 12 from 8.
As for the inventories indexes, materials stayed at 19, while the finished goods index increased to 20 from 11.
In projections for six months from now, the composite index grew to 20 from 12, the production index rose to 35 from 28. The shipments index gained to 37 from 23, while new orders surged to 34 from 18, and the backlog of orders index soared to 24 from 9. The new orders for exports index decreased to 10 from 15, and the supplier delivery time index climbed to 11 from 8.
The number of employees index increased to 23 from 18, while the average employee workweek index rose to 3 from 1. The prices received for finished product index gained to 32 from 28, and the prices paid for raw materials slipped to 54 from 64. The capital expenditures index was at 18, down from 22 the prior month.
As for the inventories indexes, materials grew to zero from negative 10, while the finished goods index reversed to positive 4 from negative 10.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
