NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “edged higher in October, and expectations for future activity rebounded after easing somewhat the past few months,” according to the bank’s monthly manufacturing survey, released Thursday.
“Factory activity in our region strengthened slightly in October, and firms now expect a modest acceleration heading forward despite some concerns about negative impacts on business from financial turmoil in Europe,” said Wilkerson. “Producer price increases eased slightly in October, but a sizable share of firms continues to anticipate higher input and selling prices in coming months.”
The composite index increased to 8 in October from 6 in September, while the production index doubled to 6 from 3, volume of shipments rose to 7 from 3, and the volume of new orders index slipped to 3 from 5, and the backlog of orders index narrowed to negative 4 from negative 6. The new orders for exports index increased to zero from negative 2, and the supplier delivery time index rose to positive 9 from negative 1.
The number of employees index held at 12, while the average employee workweek index slid to 5 from 6. The prices received for finished product index dropped to 3 from 11, while the prices paid for raw materials index decreased to 24 from 30.
As for the inventories indexes, materials dipped to 9 from 11, while the finished goods rose to 9 from 6.
In comparison to the same month a year ago, the composite index gained to 23 from 15, the production index grew to 27 from 19. The shipments index jumped to 31 from 22, while new orders increased to 31 from 18, and the backlog of orders index slid to 5 from 6. The new orders for exports index skidded to 4 from 9, and the supplier delivery time index rose to 14 from 6.
The number of employees index climbed to 27 from 18, while the average employee workweek index slumped to 13 from 21. The prices received for finished product index fell to 42 from 52 and the prices paid for raw materials climbed to 82 from 78. The capital expenditures index gained to 18 from 16.
As for the inventories indexes, materials grew to 18 from 16, while the finished goods index increased to 10 from 3.
In projections for six months from now, the composite index increased to 13 from 6, the production index doubled to 24 from 12. The shipments index jumped to 25 from 15, while new orders rose to 24 from 14, and the backlog of orders index remained at zero. The new orders for exports index grew to 9 from 1, and the supplier delivery time index surged to 10 from 2.
The number of employees index rose to 16 from 9, while the average employee workweek index narrowed to negative 2 from negative 10. The prices received for finished product index remained 25, and the prices paid for raw materials held at 54. The capital expenditures index was at 13, up from 5 the prior month.
As for the inventories indexes, materials stayed at negative 8, while the finished goods index rose to positive 2 from negative 5.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
