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Kansas City Fed Manufacturing Activity continued at a solid pace in December
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Growth in Tenth District manufacturing activity continued at a solid pace, and optimism remained high for future activity. Price indexes were mixed, but posted little change overall.
The month-over-month composite index was 14 in December, lower than 16 in November and 23 in October. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. Growth in factory activity moderated slightly at both durable and non-durable goods plants, particularly for chemicals and plastics products. Month-over-month indexes were mixed but remained generally solid. The shipments, new orders, and order backlog indexes all decreased somewhat. However, the production index edged up from 15 to 21, and the employment and new orders for exports indexes also rose. The finished goods inventory index dropped from 2 to -11, and the raw materials inventory index also decreased.
Most year-over-year factory indexes were slightly lower in December. The composite index eased from 37 to 30, and the production, shipments, new orders, and order backlog indexes also fell. In contrast, the capital expenditures index jumped from 19 to 39, and the employment index inched higher. The new orders for exports index was mostly unchanged. The raw materials inventory index fell from 45 to 15, and the finished goods inventory index also decreased.
Future factory activity expectations eased slightly but remained favorable. The future composite index eased from 27 to 22, and the future production, shipments, new orders, and order backlog also slowed slightly. The future employment index edged lower from 35 to 33, while the future capital expenditures index was mostly unchanged. The future raw materials inventory index decreased from 13 to 6, while the future finished goods inventory index increased modestly.
Price indexes were mixed in December, but posted little change overall. The month-over-month finished goods price index edged up from 12 to 15, while the raw materials price index eased slightly. The year-over-year finished goods price index inched higher from 35 to 37, while the year-over-year raw materials price index fell somewhat. The future finished goods price index slipped from 37 to 33, and the future raw materials price index also moved slightly lower.
Posted: December 22, 2017 Friday 10:00 AM