Manufacturing expansion strong in Oct., Kansas City Fed says
Manufacturing activity in the Federal Reserve Bank of Kansas City's region "posted strong growth and expectations about future activity improved further" in October, according to the bank's monthly manufacturing survey, released Thursday.
"Factory activity accelerated further in our region this month, posting its highest composite reading since 2011," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.
The composite index grew to 23 in October from 17 in September, while the production index slipped to 20 from 22, volume of shipments remained at 25, the volume of new orders index soared to 27 from 10, and the backlog of orders index gained to 23 from 7. The new orders for exports index rose to 8 from 6 and the supplier delivery time index fell to 20 from 22.
The number of employees index gained to 21 from 18, while the average employee workweek index grew to 12 from 7. The prices received for finished product index held at 13, while the prices paid for raw materials index crept to 25 from 24.
As for the inventories indexes, materials surged to 29 from 11, while the finished goods rose to positive 18 from negative 6.
In projections for six months from now, the composite index climbed to 32 from 26, and the production index rose to 47 from 38. The shipments gained to 45 from 38, while new orders increased to 45 from 27, and the backlog of orders index soared to 33 from 21. The new orders for exports index rose to 15 from 8, and the supplier delivery time index fell to 9 from 18.
The number of employees index was at 35, up from 26 last month, while the average employee workweek index soared to 27 from 7. The prices received for finished product index grew to 32 from 29, and the prices paid for raw materials climbed to 43 from 39. The capital expenditures index was at 22, after a 13 reading the prior month.
As for the inventories indexes, materials rose to 22 from 19, while the finished goods index gained to 17 from 9.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.