NEW YORK - Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “rebounded in January, and expectations remained at solid levels,” according to the bank’s monthly manufacturing survey, released Thursday.
“Factory activity in our region resumed its moderate pace of growth in January, as orders rebounded from a dip in December,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “Plant managers also anticipate solid growth heading forward, despite some acceleration in input prices.”
The composite index reversed to positive 7 in January from negative 2 in December, while the production index rose to positive 13 from negative 6, volume of shipments increased to positive 13 from negative 7, and the volume of new orders index gained to positive 9 from negative 2, and the backlog of orders index improved to positive 8 from negative 11. The new orders for exports index surged to positive 10 from negative 1, and the supplier delivery time index held at 8.
The number of employees index grew to positive 9 from negative 5, while the average employee workweek index increased to zero from negative 9. The prices received for finished product index gained to 13 from 4, while the prices paid for raw materials index increased to 42 from 27.
As for the inventories indexes, materials increased to negative 4 from negative 7, while the finished goods remained zero.
In comparison to the same month a year ago, the composite index climbed to 15 from 11, the production index slid to 16 from 19. The shipments index slumped to 13 from 18, while new orders increased to 17 from 10, and the backlog of orders index rose to 13 from zero. The new orders for exports index crept to 12 from 11, and the supplier delivery time index held at 10.
The number of employees index slipped to 11 from 16, while the average employee workweek index dropped to 2 from 11. The prices received for finished product index rose to 38 from 34 and the prices paid for raw materials gained to 67 from 64. The capital expenditures index slid to 8 from 17.
As for the inventories indexes, materials surged to 19 from zero, while the finished goods index increased to 11 from 10.
In projections for six months from now, the composite index stayed at 12, the production index rose to 28 from 15. The shipments index slid to 23 from 25, while new orders dropped to 18 from 25, and the backlog of orders index rose to 9 from 4. The new orders for exports index increased to 15 from 84, and the supplier delivery time index climbed to 8 from 5.
The number of employees index increased to 18 from 10, while the average employee workweek index slid to 2 from 1. The prices received for finished product index gained to 28 from 19, and the prices paid for raw materials surged to 64 from 47. The capital expenditures index was at 22, up from 13 the prior month.
As for the inventories indexes, materials fell to negative 10 from positive 6, while the finished goods index slid to negative 10 from positive 2.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
