NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “continued to strengthen in February,” according to the bank’s monthly manufacturing survey, released today.
“Production increased further, and producers’ expectations for future activity, including for hiring, were positive overall. Raw materials price indexes remained elevated, but finished goods prices were generally unchanged, although a rising share of firms plan to raise finished good prices in the future,” the survey reported.
The production index increased to 19 in February from 13 in January, while the volume of shipments index rose to 14 from 9, and the volume of new orders index climbed to 11 from 9, and backlog of orders index decreased to negative 5 from zero. The new orders for exports index slipped to zero from 6, and the supplier delivery time index gained to 12 from 8.
The number of employees index reversed to negative 4 from positive 2, while the average employee workweek index fell to negative 3 from positive 4. The prices received for finished product index remained at zero, while the prices paid for raw materials index climbed to 45 from 42.
As for the inventories indexes, materials gained to negative 1 from negative 7, while the finished goods held at zero.
In comparison to the same month a year ago, the production index narrowed to negative 9 from negative 10. The shipments index widened to negative 11 from negative 10, while new orders also narrowed to negative 8 from negative 11, and the backlog of orders index slipped to negative 19 from negative 14. The new orders for exports index rose to 7 from 6, and the supplier delivery time index bounced to positive 2 from negative 1.
The number of employees index gained to negative 29 from negative 39, while the average employee workweek index rose to negative 11 from negative 20. The prices received for finished product index dropped to negative 4 from negative 1, and the prices paid for raw materials surged to 38 from 25. The capital expenditures index was at negative 15, down from negative 14 the prior month.
As for the inventories indexes, materials fell to negative 20 from negative 18, while the finished goods index stayed at negative 14.
In projections for six months from now, the production index slipped to 24 from 35. The shipments index dipped to 32 from 35, while new orders remained at 25, and the backlog of orders index slid to 5 from 12. The new orders for exports index inched down to 12 from 13, and the supplier delivery time index held at 6.
The number of employees index increased to 18 from 9, while the average employee workweek index jumped to 13 from 7. The prices received for finished product index increased to 15 from 12, and the prices paid for raw materials dipped to 59 from 60. The capital expenditures index was at 3, down from 14 the prior month.
As for the inventories indexes, materials increased to 6 from 3, while the finished goods index fell to 1 from 2.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
