Manufacturing activity in the Federal Reserve Bank of Kansas City's region "continued at a solid pace in December, and producers were increasingly optimistic about future activity. Price indexes in the survey rose further, with a marked increase in raw materials prices," according to the bank's monthly manufacturing survey, released Thursday.
The production index held at 21 in December, while the volume of shipments index grew to 20 from 12, and the volume of new orders index dipped to 24 from 25, and the backlog of orders index jumped to 12 from 8. The new orders for exports index slipped to 7 from 11, and the supplier delivery time index fell to 7 from 11.
The number of employees index improved to 14 from 10, while the average employee workweek index rose to 12 from 5. The prices received for finished product index climbed to 18 from 3, while the prices paid for raw materials index jumped to 54 from 35.
As for the inventories indexes, materials increased to 11 from zero, while the finished goods climbed to 5 from 2.
In comparison to the same month a year ago, the production index rose to 32 from 27. The shipments index jumped to 33 from 29, while new orders increased to 31 from 28, and the backlog of orders index grew to 20 from 10. The new orders for exports index slid to 10 from 19, and the supplier delivery time index rose to 17 from 16.
The number of employees index increased to 12 from 6, while the average employee workweek index increased to 18 from 10. The prices received for finished product index rose to 23 from 15, and the prices paid for raw materials climbed to 67 from 62. The capital expenditures index increased to 19 from 9.
As for the inventories indexes, materials rose to 5 from zero, while the finished goods index improved to 6 from zero.
In projections for six months from now, the production index soared to 41 from 23. The shipments index increased to 33 from 23, while new orders rose to 28 from 20, and the backlog of orders index increased to 16 from 11. The new orders for exports index inched up to 16 from 15, and the supplier delivery time index remained at 10.
The number of employees index grew to 27 from 13, while the average employee workweek index climbed to 11 from zero. The prices received for finished product index increased to 35 from 27, and the prices paid for raw materials climbed to 73 from 61. The capital expenditures index was at 22, up from 12 the prior month.
As for the inventories indexes, materials increased to positive 7 from negative 1, while the finished goods index improved to zero from negative 5.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico, and western Missouri.
