NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “grew at a much slower rate in May than in previous months, but producers were more optimistic about future activity,” according to the bank’s monthly manufacturing survey, released today.
“Price indexes were mixed, with some slowing in the rate of materials price increases and a flattening of finished goods prices. However, a number of firms continued plans to raise finished goods prices in coming months,” the survey reported.
The production index slumped to 5 in May from 24 in April, while the volume of shipments index fell to negative 3 from positive 27, and the volume of new orders index dropped to negative 2 from positive 15, and backlog of orders index declined to negative 3 from positive 11. The new orders for exports index slid to zero from 5, and the supplier delivery time index rose to 15 from 10.
The number of employees index decreased to 1 from 5, while the average employee workweek index rose to 9 from 6. The prices received for finished product index fell to negative 1 from positive 5, while the prices paid for raw materials index decreased to 37 from 53.
As for the inventories indexes, materials jumped to positive 6 from negative 7, while the finished goods reversed to positive 6 from negative 9.
In comparison to the same month a year ago, the production index inched up to 16 from 14. The shipments index dipped to 13 from 15, while new orders rose to 23 from 19, and the backlog of orders index gained to zero from negative 3. The new orders for exports index grew to 8 from 7, and the supplier delivery time index crept to 10 from 8.
The number of employees index remained negative 18, while the average employee workweek index improved to positive 8 from negative 1. The prices received for finished product index increased to 9 from 7, and the prices paid for raw materials gained to 63 from 58. The capital expenditures index was at negative 5, unchanged from the prior month.
As for the inventories indexes, materials decreased to negative 14 from negative 12, while the finished goods index gained to negative 8 from negative 9.
In projections for six months from now, the production index rose to 32 from 22. The shipments index gained to 33 from 21, while new orders inched up to 31 from 28, and the backlog of orders index increased to 16 from 9. The new orders for exports index slipped to 7 from 11, and the supplier delivery time index decreased to 9 from 15.
The number of employees index decreased to 14 from 18, while the average employee workweek index jumped to 13 from 4. The prices received for finished product index held at 17, and the prices paid for raw materials slumped to 45 from 61. The capital expenditures index was at 5, off from 11 the prior month.
As for the inventories indexes, materials decreased to negative 10 from positive 3, while the finished goods index fell to negative 6 from zero.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
