NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “strengthened in January, with production returning nearly back to year-ago levels,” according to the bank’s monthly manufacturing survey, released today.
“Producers’ expectations for future factory activity also rebounded strongly after easing slightly in December. Price indexes moved higher, with twice as many firms reporting a rise in current and expected raw materials prices, but pass-through to finished goods prices remained limited,” the survey reported.
The production index increased to 13 in January from 7 in December, while the volume of shipments index rose to 9 from 3, and the volume of new orders index climbed to 9 from zero, and backlog of orders index increased to zero from negative 4. The new orders for exports index increased to 6 from 5, and the supplier delivery time index remained at 8.
The number of employees index reversed to positive 2 from negative 1, while the average employee workweek index rose to 4 from zero. The prices received for finished product index improved to zero from negative 1, while the prices paid for raw materials index surged to 42 from 22.
As for the inventories indexes, materials gained to negative 7 from negative 12, while the finished goods improved to zero from negative 1.
In comparison to the same month a year ago, the production index narrowed to negative 10 from negative 30. The shipments index narrowed to negative 10 from negative 31, while new orders also narrowed to negative 11 from negative 25, and the backlog of orders index improved to negative 14 from negative 32. The new orders for exports index rose to 6 from zero, and the supplier delivery time index slipped to negative 1 from zero.
The number of employees index gained to negative 39 from negative 48, while the average employee workweek index rose to negative 20 from negative 32. The prices received for finished product index improved to negative 1 from negative 10, and the prices paid for raw materials surged to 25 from 6. The capital expenditures index was at negative 14, up from negative 31 the prior month.
As for the inventories indexes, materials jumped to negative 18 from negative 35, while the finished goods index slid to negative 14 from negative 12.
In projections for six months from now, the production index doubled to 35 from 17. The shipments index soared to 35 from 15, while new orders climbed to 25 from 17, and the backlog of orders index rose to 12 from 7. The new orders for exports index inched up to 13 from 11, and the supplier delivery time index sank to 6 from 10.
The number of employees index increased to 9 from 2, while the average employee workweek index slumped to 7 from 8. The prices received for finished product index increased to 12 from 8, and the prices paid for raw materials surged to 60 from 31. The capital expenditures index was at 14, up from zero the prior month.
As for the inventories indexes, materials reversed to positive 3 from negative 2, while the finished goods index held steady at 2.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
