NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “slowed in July after a solid rebound in June, but producers remain generally upbeat about future activity,” according to the bank’s monthly manufacturing survey, released Thursday.
“Factory activity in our region grew at a slower pace in July after rebounding solidly in June,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “Several firms blamed the slowdown on customers being cautious until the national debt ceiling debate is resolved. However, expectations for orders, hiring and capital spending, later in the year, generally remained as solid as in recent months.”
The composite index slumped to 3 in July from 14 in June, while the production index dropped to 2 from 22, volume of shipments fell to zero from 25, and the volume of new orders index reversed to negative 5 from positive 10, and the backlog of orders index declined to negative 19 from positive 10. The new orders for exports index reversed to negative 8 from positive 8, and the supplier delivery time index rose to 9 from 7.
The number of employees index fell to 4 from 17, while the average employee workweek index slid to negative 2 from positive 9. The prices received for finished product index grew to 14 from 10, while the prices paid for raw materials index increased to 39 from 36.
As for the inventories indexes, materials decreased to 7 from 16, while the finished goods fell to 3 from 8.
In comparison to the same month a year ago, the composite index dipped to 24 from 31, the production index fell to 28 from 40. The shipments index slipped to 32 from 42, while new orders decreased to 30 from 39, and the backlog of orders index slid to 17 from 23. The new orders for exports index dropped to 7 from 8, and the supplier delivery time index crept to 20 from 19.
The number of employees index fell to 24 from 29, while the average employee workweek index slid to 20 from 29. The prices received for finished product index rose to 50 from 45 and the prices paid for raw materials slid to 84 from 85. The capital expenditures index dipped to 8 from 13.
As for the inventories indexes, materials fell to 20 from 28, while the finished goods index decreased to 4 from 12.
In projections for six months from now, the composite index decreased to 14 from 15, the production index slipped to 21 from 25. The shipments index climbed to 27 from 23, while new orders remained 20, and the backlog of orders index increased to 9 from 6. The new orders for exports index slid to 8 from 16, and the supplier delivery time index held at 9.
The number of employees index grew to 17 from 16, while the average employee workweek index slid to negative 1 from positive 5. The prices received for finished product index decreased to 25 from 34, and the prices paid for raw materials jumped to 60 from 55. The capital expenditures index was at 16, up from 10 the prior month.
As for the inventories indexes, materials increased to 4 from 3, while the finished goods index fell to negative 4 from positive 4.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
