Respondents to the Federal Reserve Bank of Kansas City's monthly manufacturing survey reported moderate acceleration of growth in March, while firms plan to increase capital spending in the next six to 12 months.
"Factories in the region reported an uptick in growth in March, following three straight months in which the pace of growth slowed," said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City. “Plans for both hiring and capital spending picked up.”
The composite index grew to 10 in March from 1 in February, while the production index rebounded to positive 17 from negative 4, volume of shipments reversed to positive 14 from negative 14, the volume of new orders index gained to positive 4 from negative 10, and the backlog of orders index increased to positive 9 from negative 18. The new orders for exports index climbed to positive 5 from negative 2 and the supplier delivery time index dipped to 8 from 10.
The number of employees index rose to 14 from 10, while the average employee workweek index gained to 14 from zero. The prices received for finished product index slid to 7 from 18, while the prices paid for raw materials index dropped to 15 from 19.
As for the inventories indexes, materials rebounded to positive 9 from negative 2, while the finished goods fell to zero from 4.
In projections for six months from now, the composite index increased to 22 from 13, and the production index rose to 28 from 18. The shipments climbed to 33 from 15, while new orders rose to 29 from 13, and the backlog of orders index grew to 17 from 4. The new orders for exports index rebounded to positive 6 from negative 3, and the supplier delivery time index increased to 15 from 12.
The number of employees index was at 34, up from 28 last month, while the average employee workweek index grew to 13 from 5. The prices received for finished product index climbed to 39 from 34, and the prices paid for raw materials gained to 45 from 43. The capital expenditures index was at 31, up from 12 the prior month.
As for the inventories indexes, materials rose to positive 7 from negative 4, while the finished goods index climbed to 6 from 2.
The Tenth Federal Reserve District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
