Economy

Tenth District Manufacturing Slower in September Says Kansas City Fed

Written by Sandy Williams


Manufacturing activity in the Tenth District slowed in September according to a survey by the Federal Reserve Bank of Kansas City.  The month-over-month composite index that factors in production, new orders, employment, supplier delivery times, and raw materials inventory indices, was 2, dropping from 8 in August and 6 in July.

The production index slid from 21 to 4 in September along with decrease in shipments, new orders and backlogs.  The employment index retreated from a rise in August.  The raw materials index was flat for the month but the finished goods index decreased slightly. The price indices for finished goods and raw material prices fell slightly month-over-month

Manufacturers responded with optimism in the future factor indexes.  The future composite index doubled from 9 to 18, reaching its highest level since March 2012.  Production, shipments, new orders and employment are all expected to grow.  Future capital expenditures increased from 13 to 17.  The index for future new orders for exports dropped slightly. Future inventory levels are expected to remain stable.

Survey comments revealed a shortage labor in the Tenth District.  

The September survey was based on responses from 104 manufacturers from Colorado, Kansas, Nebraska, Wyoming, northern New Mexico and western Missouri.

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