Manufacturing activity in the Federal Reserve Bank of Kansas City’s region “declined in June, although export activity continued at solid levels and firms’ expectations for future factory activity remained generally positive,” according to the bank’s monthly manufacturing survey released yesterday. “Price pressures intensified, with nearly all survey price indexes posting record high levels.”
The production index slipped to negative 13 in June from zero in May, the volume of shipments index decreased to negative 14 from positive 6, the volume of new orders index declined to negative 3 from zero, and the backlog of orders index fell to negative 12 from zero. The new orders for exports index slumped to 8 from 17, and the supplier delivery time index increased to 14 from 5.
The number of employees index fell to negative 9 from positive 1, while the average employee workweek index dipped to negative 2 from negative 1. The prices received for finished product index was at 36, up from 31 in May, while the prices paid for raw materials index held at 70.
In projections for six months from now, the production index increased to 21 from 11. The shipments index inched up to 18 from 16, while new orders fell to 16 from 22, and the backlog of orders index increased to 6 from 2. The new orders for exports index grew to 25 from 22, and the supplier delivery time index fell to 8 from 10.
The number of employees index dropped to 3 from 6, while the average employee workweek index fell to negative 5 from negative 3. The prices received for finished product index remained at 49, and the prices paid for raw materials rose to 84 from 82. The capital expenditures index was at 16, up from 14 in May.