KANSAS CITY, Mo. - Manufacturing enjoyed a strong turnaround in April in the Kansas City area, according to the region’s Federal Reserve.
Prices indexes remained stable. Raw materials registered at 38 in March, but eased slightly to 36 in April.
The net percentage of firms that indicated month-over-month production increases was 26 in April, versus 8 in March. The year-over-year production index rose from 20 to 28 and plants that produce durable goods saw an especially high rate of increase.
On a month-over-month basis, shipments increased from 0 to 25, while new orders, order backlog and employment all increased following a decrease in March. New orders for export index made its turnaround to 6 from a two-year low of -2 in March.
Year-over-year, shipments rose from 12 to 33, and new orders, order backlog and employment saw strong gains after a drop in March.
For the coming months, future shipments dipped to 42 from 44 after a steep rise in March. Future capital expenditures were stable, while future employment and supplier delivery times dropped.
The future new orders index increased from 36 to 40, continuing a three-month trend. Future order backlog and new orders for exports also increased, registering 19 and 7, respectively. The future inventory indexes dropped significantly, with finished goods at -5 from 10 in March and the materials inventory index was at a four-year low of -15.
For more information, click here. http://www.kansascityfed.org/mfgsurv/pdf/2007Apr26mfg.pdf