NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “eased slightly” in December, while expectations for future activity improved, according to the bank’s monthly manufacturing survey, released Thursday.
“We saw a slight moderation in factory activity in our region in December,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “But plant managers continue to expect solid growth in the months ahead and are planning to increase employment and capital spending accordingly.”
The composite index reversed to negative 4 in December from positive 4 in November, while the production index fell to negative 8 from zero, volume of shipments declined to negative 7 from zero, and the volume of new orders index slipped to negative 6 from negative 4, and the backlog of orders index widened to negative 14 from negative 9. The new orders for exports index dipped to negative 3 from negative 2, and the supplier delivery time index fell to 7 from 12.
The number of employees index fell to negative 6 from positive 2, while the average employee workweek index decreased to negative 9 from negative 5. The prices received for finished product index gained to 6 from 1, while the prices paid for raw materials index increased to 28 from 12.
As for the inventories indexes, materials reversed to negative 8 from positive 8, while the finished goods fell to zero from 17.
In comparison to the same month a year ago, the composite index dipped to 11 from 22, the production index slid to 19 from 23. The shipments index slumped to 18 from 21, while new orders decreased to 10 from 21, and the backlog of orders index fell to zero from 8. The new orders for exports index climbed to 11 from 6, and the supplier delivery time index dropped to 10 from 16.
The number of employees index slipped to 16 from 22, while the average employee workweek index climbed to 11 from 7. The prices received for finished product index fell to 34 from 37 and the prices paid for raw materials dropped to 64 from 70. The capital expenditures index slid to 17 from 23.
As for the inventories indexes, materials sank to zero from 27, while the finished goods index decreased to 10 from 23.
In projections for six months from now, the composite index crept to 14 from 12, the production index held at 22. The shipments index rose to 27 from 19, while new orders jumped to 27 from 20, and the backlog of orders index fell to 6 from 10. The new orders for exports index increased to 9 from 4, and the supplier delivery time index dropped to 3 from 6.
The number of employees index increased to 14 from 11, while the average employee workweek index reversed to positive 6 from negative 5. The prices received for finished product index slipped to 21 from 26, and the prices paid for raw materials dipped to 55 from 58. The capital expenditures index was at 17, unchanged from the prior month.
As for the inventories indexes, materials grew to 5 from zero, while the finished goods index slid to 6 from 6.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
