Manufacturing activity in the Federal Reserve Bank of Kansas City's region "expanded at a slower pace with solid expectations for future activity" in June, according to the bank's monthly manufacturing survey, released Thursday.
"Firms reported faster growth in June than earlier in the second quarter," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. "The share of factories planning to add workers over the next six months also rose solidly."
The composite index grew to 11 in June from 8 in May, while the production index soared to positive 23 from negative 1, volume of shipments gained to 23 from 3, the volume of new orders index declined to 4 from 9, and the backlog of orders index decreased to negative 6 from positive 12. The new orders for exports index slipped to 3 from 4 and the supplier delivery time index decreased to 8 from 14.
The number of employees index rose to 15 from 11, while the average employee workweek index increased to 7 from 1. The prices received for finished product index fell to negative 2 from positive 8, while the prices paid for raw materials index slid to 16 from 17.
As for the inventories indexes, materials decreased to 2 from 4, while the finished goods dropped to negative 2 from zero.
In projections for six months from now, the composite index dipped to 25 from 30, and the production index decreased to 42 from 50. The shipments index fell to 37 from 44, while new orders dropped to 39 from 46, and the backlog of orders index plunged to 12 from 29. The new orders for exports index fell to 11 from 17, and the supplier delivery time index decreased to 11 from 21.
The number of employees index was at 32, up from 24, while the average employee workweek index decreased to 10 from 18. The prices received for finished product index slipped to 21 from 23, and the prices paid for raw materials increased to 49 from 37. The capital expenditures index was at 16, after a 23 reading the prior month.
As for the inventories indexes, materials fell to zero from 10, while the finished goods index declined to 7 from 14.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.