Respondents to the Federal Reserve Bank of Kansas City's monthly manufacturing survey reported steady activity in September, despite many firms saying they’re being hurt by tariffs.
"Regional factories reported another solid month of growth," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “This was even with over two-thirds of respondents noting that tariffs had negatively affected their business.”
The composite index dipped to 13 in September from 14 in August, while the production index held at 10, volume of shipments fell to 2 from 18, the volume of new orders index gained to 25 from 9, and the backlog of orders index dropped to 4 from 8. The new orders for exports index reversed to positive 1 from negative 1 and the supplier delivery time index slid to 18 from 19.
The number of employees index plunged to 1 from 14, while the average employee workweek index rose to 3 from 1. The prices received for finished product index slid to 24 from 27, while the prices paid for raw materials index increased to 45 from 44.
As for the inventories indexes, materials grew to 20 from 17, while the finished goods slid to 7 from 9.
In projections for six months from now, the composite index dipped to 27 from 29, and the production index slid to 38 from 44. The shipments fell to 34 from 40, while new orders decreased to 35 from 36, and the backlog of orders index climbed to 17 from 16. The new orders for exports index gained to 15 from 9, and the supplier delivery time index fell to 18 from 21.
The number of employees index was at 29, off from 33 last month, while the average employee workweek index slipped to 14 from 15. The prices received for finished product index soared to 44 from 28, and the prices paid for raw materials surged to 57 from 40. The capital expenditures index was at 36, up from 28 the prior month.
As for the inventories indexes, materials rose to 17 from 11, while the finished goods index slid to 9 from 10.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
