Respondents to the Federal Reserve Bank of Kansas City's monthly manufacturing survey reported slower growth in December, while expectations grew.
"Factories in our region reported a drop in production in December but continued growth in orders, employment, and capital spending," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “Several contacts noted difficulties with weather or with having enough workers to meet demand”
The composite index dropped to 3 in December from 15 in November, while the production index plunged to negative 18 from positive 24, volume of shipments dropped to negative 3 from positive 31, the volume of new orders index fell to 4 from 20, and the backlog of orders index decreased to 9 from 18. The new orders for exports index reversed to negative 7 from positive 6 and the supplier delivery time index dropped to 4 from 11.
The number of employees index grew to 8 from 6, while the average employee workweek index dipped to 1 from 3. The prices received for finished product index fell to 2 from 23, while the prices paid for raw materials index dropped to 28 from 41.
As for the inventories indexes, materials gained to 19 from 15, while the finished goods rose to 15 from 11.
In projections for six months from now, the composite index gained to 20 from 16, and the production index slid to 19 from 27. The shipments fell to 20 from 25, while new orders decreased to 22 from 25, and the backlog of orders index dipped to 6 from 8. The new orders for exports index declined to 9 from 20, and the supplier delivery time index increased to 15 from 6.
The number of employees index was at 37, up from 20 last month, while the average employee workweek index remained at 12. The prices received for finished product index gained to 38 from 30, and the prices paid for raw materials held at 46. The capital expenditures index was at 29, up from 23 the prior month.
As for the inventories indexes, materials climbed to 6 from 3, while the finished goods index crept to 9 from 8.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
