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Kansas City Fed Manufacturing Activity fell again in January
Tenth District manufacturing activity fell again in January, while producers’ expectations for future activity remained solid. Most price indexes declined modestly.
The month-over-month composite index was -9 in January, unchanged from -9 in December but down from -1 in November. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. Activity improved somewhat at nondurable goods factories, while durable goods saw further weakening, particularly for machinery and computer and electronic equipment. Most month-over-month indexes were mixed. The production and shipments indexes remained slightly negative, while the employment and new orders for exports indexes improved. Conversely, the new orders and order backlog indexes both fell to their lowest levels in six years. The raw materials inventory increased from -15 to -2, and the finished goods inventory index also rose but remained in negative territory.
Year-over-year factory indexes were mixed in January. The composite year-over-year index inched up from -15 to -13, and the production, shipments, and new orders indexes also moved higher but remained well below zero. The employment index was largely unchanged at -15. The order backlog index fell to a six year low, and the capital expenditures index declined again. Both inventory indexes eased slightly.
Most future factory indexes were somewhat lower, but on net positive overall. The future composite index was basically unchanged at 5, while the shipments, employment, and new orders for exports indexes increased somewhat. The future production and new orders indexes decreased slightly. The future order backlog index dropped back into negative territory after increasing last month, and the future capital expenditures index also declined modestly. The future raw materials inventory index moved slightly up, while the future finished goods inventory index edged down again.
Most price indexes fell modestly in January. The month-over-month finished goods price index decreased from -7 to -15, while the raw materials price index was basically unchanged. The year-over-year finished goods price index edged down from 1 to -4, and the raw materials price index also eased further. The future finished goods price index fell from 0 to -6, and the future raw materials price index declined moderately.
Posted: January 28, 2016 Thursday 11:00 AM