NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “continued to expand modestly, and producers remained generally positive about future months,” according to the bank’s monthly manufacturing survey, released Thursday.
“Factory activity in our region continues to be buoyed by strong growth among agriculture and energy-related manufacturers,” said Wilkerson. “New orders accelerated at these firms in August even as some other firms experienced softness. But hiring and capital spending plans remain fairly solid across broader categories of producers.”
Although price indexes eased this month, firms still planned to raise selling prices, he added.
The composite index remained at 3 in August, while the production index reversed to negative 2 from positive 2, volume of shipments fell to negative 2 from zero, and the volume of new orders index improved to positive 1 from negative 5, and the backlog of orders index narrowed to negative 10 from negative 19. The new orders for exports index reversed to positive 1 from negative 8, and the supplier delivery time index slid to 4 from 9.
The number of employees index rose to 8 from 4, while the average employee workweek index slid to negative 5 from negative 2. The prices received for finished product index dropped to 4 from 14, while the prices paid for raw materials index decreased to 28 from 39.
As for the inventories indexes, materials dipped to 6 from 7, while the finished goods fell to 2 from 3.
In comparison to the same month a year ago, the composite index dipped to 21 from 24, the production index fell to 19 from 28. The shipments index slipped to 19 from 32, while new orders decreased to 22 from 30, and the backlog of orders index slid to 5 from 17. The new orders for exports index climbed to 8 from 7, and the supplier delivery time index fell to 13 from 20.
The number of employees index dipped to 23 from 24, while the average employee workweek index slumped to 10 from 20. The prices received for finished product index fell to 46 from 50 and the prices paid for raw materials dropped to 77 from 84. The capital expenditures index gained to 13 from 8.
As for the inventories indexes, materials grew to 26 from 20, while the finished goods index increased to 17 from 4.
In projections for six months from now, the composite index decreased to 9 from 14, the production index slipped to 12 from 21. The shipments index slipped to 17 from 27, while new orders remained 20, and the backlog of orders index decreased to negative 1 from positive 9. The new orders for exports index slid to 6 from 8, and the supplier delivery time index fell to 5 from 9.
The number of employees index slid to 12 from 17, while the average employee workweek index held at negative 1. The prices received for finished product index decreased to 20 from 25, and the prices paid for raw materials slumped to 53 from 60. The capital expenditures index was at 18, up from 16 the prior month.
As for the inventories indexes, materials decreased to negative 6 from positive 4, while the finished goods index fell to negative 6 from negative 4.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
