NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “continued to grow solidly, with production almost back to year-ago levels,” according to the bank’s monthly manufacturing survey, released today.
“Producers’ expectations for future factory activity rebounded after moderating slightly in February. Price indexes were mixed, with some moderation in raw materials price increases, but more producers planned to pass-through cost increases than in previous months,” the survey reported.
The production index dipped to 18 in March from 19 in February, while the volume of shipments index rose to 17 from 14, and the volume of new orders index climbed to 12 from 11, and backlog of orders index reversed to positive 7 from negative 5. The new orders for exports index gained to 4 from zero, and the supplier delivery time index slid to 11 from 12.
The number of employees index reversed to positive 2 from negative 4, while the average employee workweek index rose to positive 1 from negative 3. The prices received for finished product index increased to 5 from zero, while the prices paid for raw materials index slipped to 42 from 45.
As for the inventories indexes, materials gained to positive 1 from negative 1, while the finished goods fell to negative 7 from zero.
In comparison to the same month a year ago, the production index narrowed to negative 1 from negative 9. The shipments index improved to negative 5 from negative 11, while new orders also narrowed to negative 3 from negative 8, and the backlog of orders index gained to negative 13 from negative 19. The new orders for exports index fell to 2 from 7, and the supplier delivery time index jumped to 10 from 2.
The number of employees index dipped to negative 31 from negative 29, while the average employee workweek index rose to negative 10 from negative 11. The prices received for finished product index rose to positive 7 from negative 4, and the prices paid for raw materials surged to 55 from 38. The capital expenditures index was at negative 8, up from negative 15 the prior month.
As for the inventories indexes, materials increased to negative 17 from negative 20, while the finished goods index gained to negative 11 from negative 14.
In projections for six months from now, the production index gained to 33 from 24. The shipments index rose to 36 from 32, while new orders inched up to 27 from 25, and the backlog of orders index surge to 16 from 5. The new orders for exports index slumped to 5 from 12, and the supplier delivery time index increased to 9 from 6.
The number of employees index increased to 20 from 18, while the average employee workweek index slipped to 10 from 13. The prices received for finished product index increased to 19 from 15, and the prices paid for raw materials dipped to 55 from 59. The capital expenditures index was at 5, up from 3 the prior month.
As for the inventories indexes, materials decreased to 4 from 6, while the finished goods index fell to negative 4 from positive 1.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
