Research >> Economics
Kansas City Fed Manufacturing Activity rebounded moderately in September
|
Tenth District manufacturing activity rebounded moderately in September, and producers’ expectations for future activity remained positive. The price indexes were mixed. The month-over-month composite index was 6 in September, up from -4 in August and -6 in July. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. Non-durable goods activity grew modestly, while durable goods production grew strongly, particularly for machinery and metals production. Most month-over-month indexes improved markedly in September. The production index climbed from -7 to 15, and the shipments and new orders indexes also rose considerably. The employment, new export orders, order backlog indexes were modestly higher, while the supplier delivery time index fell into negative territory. The raw materials inventory index rose from -1 to 8, and the finished goods inventory index inched higher.
Year-over-year factory indexes improved further but remained below zero. The composite year-over-year index inched higher from -12 to -9, and the new orders and new orders for exports indexes also rose somewhat. The production, shipments, and capital spending indexes were moderately higher, while the employment and order backlog indexes were unchanged. The supplier delivery time index eased to -5. The raw materials inventory index increased from -10 to -4, and the finished goods inventory index moved up to -7.
Most future factory indexes remained positive. The future composite index inched lower from 11 to 10, and the future production and supplier delivery time indexes were also slightly lower. However, the future capital spending index jumped to 14, the highest in over a year, and the future new orders for exports and employee workweek indexes rose modestly. The future employment and new orders indexes also edged higher, while the future shipments and order backlog indexes stayed flat. The future raw materials inventory index edged down -7, while the future finished goods index rose from -8 to -5.
Price indexes remained mixed in September. The month-over-month finished goods price index was unchanged at -7, while the raw materials price index edged lower again. The year-over-year finished goods price index fell into negative territory, while the raw materials price index rose slightly from -4 to -2. The future finished goods price index declined from 17 to 7, while the future raw materials price index increased to 26.
Posted: September 22, 2016 Thursday 11:00 AM