Respondents to the Federal Reserve Bank of Kansas City's monthly manufacturing survey reported slower growth in January, while expectations grew.
"Regional factories had another month of sluggish growth in January," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “About one-sixth of the firms in the survey said the partial government shutdown had negatively affected their business.”
The composite index dipped to 5 in January from 6 in December, while the production index soared to positive 2 from negative 13, volume of shipments doubled to 6 from 3, the volume of new orders index fell to 1 from 7, and the backlog of orders index decreased to negative 13 from positive 9. The new orders for exports index widened to negative 10 from negative 6 and the supplier delivery time index jumped to 14 from 7.
The number of employees index slid to 7 from 10, while the average employee workweek index gained to 7 from 3. The prices received for finished product index surged to 23 from 8, while the prices paid for raw materials index dropped to 23 from 34.
As for the inventories indexes, materials declined to 4 from 19, while the finished goods fell to 8 from 12.
In projections for six months from now, the composite index decreased to 18 from 22, and the production index grew to 33 from 24. The shipments rose to 30 from 25, while new orders increased to 25 from 23, and the backlog of orders index soared to 17 from 7. The new orders for exports index declined to negative 4 from positive 9, and the supplier delivery time index slid to 13 from 17.
The number of employees index was at 22, down from 37 last month, while the average employee workweek index slipped to 10 from 17. The prices received for finished product index dipped to 40 from 41, and the prices paid for raw materials decreased to 49 from 50. The capital expenditures index was at 33, unchanged from the prior month.
As for the inventories indexes, materials fell to negative 2 from positive 7, while the finished goods index dropped to negative 5 from positive 9.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
