Research >> Economics
Kansas City Fed Manufacturing activity grew at a slower rate
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Tenth District manufacturing activity grew at a much slower rate in May than in previous months, but producers were more optimistic about future activity. Price indexes were mixed, with some slowing in the rate of materials price increases and a flattening of finished goods prices. However, a number of firms continued plans to raise finished goods prices in coming months.
The net percentage of firms reporting month-over-month increases in production in May was 5, down from 24 in April and 18 in March. Production growth slowed at both durable and nondurable-goods-producing plants. Most other month-over-month indicators also edged down from April levels. The shipments, new orders, and order backlog indexes all moved into negative territory, and the employment index eased after reaching a two-year high last month. The new orders for exports index dropped from 5 to 0, while the supplier delivery time index climbed higher. Both inventory indexes increased into positive territory.
Posted: May 27, 2010 Thursday 11:00 AM