Research >> Economics
Kansas City Fed Manufacturing Activity declined in March
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Tenth District manufacturing activity declined in March, and producers’ expectations moderated somewhat but remained slightly positive. Most price indexes continued to decrease, with several reaching their lowest level since 2009. In a special question about the West Coast port disruptions, 32 percent of firms said it had affected them negatively.
The month-over-month composite index was -4 in March, down from 1 in February and 3 in January. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. The overall slower growth was mostly attributable to declines in plastics, food, and chemical production and continued weakness in metals and machinery. Looking across District states, the largest decline was in Oklahoma, with moderate slowdowns in Kansas and Nebraska. Other month-over-month indexes decreased from the previous month. The production and shipments indexes fell after rising last month, and the new orders and order backlog indexes dropped to their lowest levels in over two years. In contrast, the employment and new orders for exports indexes inched higher but remained negative. The finished goods inventory index eased from 3 to -2, and the raw materials inventory index also moved into negative territory.
Year-over-year factory indexes also decreased. The composite year-over-year index declined from 9 to -2, and the production, shipments, new orders, and employment indexes also moved into negative territory. The capital expenditures index eased from 9 to 3, and the order backlog index decreased further. Both inventory indexes moderated somewhat.
Most future factory indexes eased slightly but remained positive. The future composite index moved down from 11 to 4, and the future production, shipments, and new orders index also decreased moderately. The future employment index dropped from 14 to 7, its lowest level in over a year, and the future capital expenditures index fell to a five-year low. In contrast, the future order backlog index was unchanged, and the future new orders for exports index edged slightly higher. The future finished goods inventory index fell from 0 to -9, and the future raw materials inventory index also decreased.
Most price indexes continued to decrease in March. The month-over-month finished goods price index eased from -3 to -6, and the raw materials price index dropped from -6 to -12. The year-over-year raw materials price index fell from 29 to 22, and the finished goods price index inched lower. The future raw materials price index eased slightly, while the future finished goods price index rose somewhat, from 6 to 12.
Posted: March 26, 2015 Thursday 11:00 AM