NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “accelerated rapidly in March, posting a record high for the second straight month. Expectations moderated slightly from last month, but still remained solid. Price indexes for raw materials reached historically high levels, and more firms indicated plans to pass cost increases on to customers,” according to the bank’s monthly manufacturing survey, released Thursday.
The composite index rose to 27 from 19 in February, while the production index surged to 39 from 23, volume of shipments increased to 37 from 13, and the volume of new orders index gained to 31 from 28, and the backlog of orders index climbed to 25 from 8. The new orders for exports index slid to 9 from 14, and the supplier delivery time index rose to 22 from 15.
The number of employees index spurted to 25 from 23, while the average employee workweek index soared to 25 from 8. The prices received for finished product index grew to 21 from 20, while the prices paid for raw materials index climbed to 72 from 66.
As for the inventories indexes, materials increased to 20 from 6, while the finished goods jumped to 5 from 1.
In comparison to the same month a year ago, the composite index grew to 30 from 21, the production index grew to 35 from 34. The shipments index climbed to 38 from 29, while new orders remained 35, and the backlog of orders index surged to 26 from 16. The new orders for exports index fell to 12 from 22, and the supplier delivery time index jumped to 25 from 17.
The number of employees index soared to 28 from 13, while the average employee workweek index gained to 27 from 21. The prices received for finished product index rose to 48 from 30, and the prices paid for raw materials climbed to 89 from 80. The capital expenditures index gained to 14 from 10.
As for the inventories indexes, materials rose to 26 from 7, while the finished goods index increased to 19 from 5.
In projections for six months from now, the composite index decreased to 23 from 30, the production index slumped to 32 from 50. The shipments index plunged to 33 from 53, while new orders dropped to 31 from 42, and the backlog of orders index decreased to 12 from 20. The new orders for exports index fell to 17 from 25, and the supplier delivery time index remained at 17.
The number of employees index slid to 19 from 27, while the average employee workweek index slipped to 1 from 8. The prices received for finished product index increased to 40 from 39, and the prices paid for raw materials rose to 81 from 76. The capital expenditures index was at 24, up from 23 the prior month.
As for the inventories indexes, materials increased to 15 from 14, while the finished goods index rose to 11 from 5.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
