NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “rebounded solidly in June after a brief slowdown last month, and producers remained generally optimistic about future activity,” according to the bank’s monthly manufacturing survey, released Thursday.
“Factories in the region basically resumed their solid pace of growth from earlier in the year, following some disruptions in May,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “Also, hiring plans remain fairly solid for the second half of the year.”
The composite index jumped to 14 in June from 1 in May, while the production index reversed to positive 22 from negative 2, volume of shipments surge to positive 25 from negative 8, and the volume of new orders index soared to positive 10 from negative 15, and the backlog of orders index climbed to positive 10 from negative 19. The new orders for exports index grew to 8 from 6, and the supplier delivery time index fell to 7 from 10.
The number of employees index gained to 17 from 9, while the average employee workweek index rose to positive 9 from negative 3. The prices received for finished product index slid to 10 from 14, while the prices paid for raw materials index fell to 36 from 54.
As for the inventories indexes, materials increased to 16 from 1, while the finished goods held at 8.
In comparison to the same month a year ago, the composite index crept to 31 from 30, the production index fell to 40 from 41. The shipments index gained to 42 from 39, while new orders increased to 39 from 37, and the backlog of orders index slid to 23 from 25. The new orders for exports index dropped to 8 from 13, and the supplier delivery time index dipped to 19 from 21.
The number of employees index grew to 29 from 25, while the average employee workweek index slid to 29 from 30. The prices received for finished product index held at 45 and the prices paid for raw materials slid to 85 from 87. The capital expenditures index dipped to 13 from 14.
As for the inventories indexes, materials rose to 28 from 25, while the finished goods index decreased to 12 from 17.
In projections for six months from now, the composite index increased to 15 from 13, the production index slipped to 25 from 29. The shipments index dropped to 23 from 26, while new orders gained to 20 from 16, and the backlog of orders index decreased to 6 from 12. The new orders for exports index slid to 16 from 17, and the supplier delivery time index climbed to 9 from 1.
The number of employees index fell to 16 from 20, while the average employee workweek index grew to positive 5 from negative 1. The prices received for finished product index increased to 34 from 30, and the prices paid for raw materials dipped to 55 from 58. The capital expenditures index was at 10, off from 18 the prior month.
As for the inventories indexes, materials increased to 3 from 1, while the finished goods index fell to 4 from 5.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
