Research >> Economics
Kansas City Fed Manufacturing activity strengthened
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Growth in Tenth District manufacturing activity strengthened in January, with production returning nearly back to year-ago levels. Producers’ expectations for future factory activity also rebounded strongly after easing slightly in December. Price indexes moved higher, with twice as many firms reporting a rise in current and expected raw materials prices, but pass-through to finished goods prices remained limited.
The net percentage of firms reporting month-over-month increases in production in January was 13, up from 7 in December, but down slightly from 15 in November (Tables 1 & 2, Chart). Production growth increased at non-durable goods plants but slowed slightly among durable goods producers, particularly for computer and electronic products. Most other month-over-month indicators increased in January. The shipments, new orders, and order backlog indexes all climbed higher. The employment index edged up into positive territory for the first time in 18 months, and the new orders for exports index also rose slightly. The raw materials inventory index increased from -12 to -7, and the finished goods inventory index inched higher.
Posted: January 28, 2010 Thursday 11:00 AM