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Kansas City Fed Manufacturing activity continued to grow solidly
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Tenth District manufacturing activity continued to grow solidly, with production almost back to year-ago levels. Producers’ expectations for future factory activity rebounded after moderating slightly in February. Price indexes were mixed, with some moderation in raw materials price increases, but more producers planned to pass-through cost increases than in previous months.
The net percentage of firms reporting month-over-month increases in production in March was 18, similar to the reading of 19 in February, and up from 13 in January (Tables 1 & 2, Chart). Production growth eased at non-durable goods plants but increased slightly among durable goods producers, particularly for fabricated metals. Most other month-over-month indicators edged higher in March. The shipments, new orders, and order backlog indexes all increased modestly, and the employment index moved into positive territory, recording its highest level in two years. Meanwhile, the new orders for exports index rebounded after falling somewhat last month. The raw materials inventory index rose from -1 to 3, while the finished goods inventory index dropped from 0 to -7.
Posted: March 25, 2010 Thursday 11:00 AM