Respondents to the Federal Reserve Bank of Kansas City's monthly manufacturing survey reported stronger activity and optimism in June, while prices were little changed at high levels.
"The composite index remained strong for the third consecutive month, and many firms reported difficulties finding qualified workers," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “Prices indexes remained at high levels.”
The composite index dipped to 28 in June from 29 in May (its all-time high), while the production index slid to 38 from 41, volume of shipments fell to 39 from 42, the volume of new orders index dropped to 27 from 38, and the backlog of orders index declined to 10 from 27. The new orders for exports index slipped to 6 from 9 and the supplier delivery time index dipped to 22 from 23.
The number of employees index remained at 24, while the average employee workweek index grew to 25 from 24. The prices received for finished product index held at 22, while the prices paid for raw materials index decreased to 47 from 53.
As for the inventories indexes, materials increased to 27 from 19, while the finished goods gained to 19 from 11.
In projections for six months from now, the composite index rose to 36 from 26, and the production index soared to 53 from 32. The shipments gained to 52 from 39, while new orders increased to 42 from 26, and the backlog of orders index crept to 25 from 24. The new orders for exports index slid to 7 from 11, and the supplier delivery time index fell to 20 from 30.
The number of employees index was at 37, up from 35 last month, while the average employee workweek index surged to 31 from 12. The prices received for finished product index decreased to 40 from 44, and the prices paid for raw materials gained to 67 from 63. The capital expenditures index was at 36, up from 33 the prior month.
As for the inventories indexes, materials soared to 30 from 7, while the finished goods index spiked to 23 from 3.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.