Manufacturing activity in the Kansas City Federal Reserve Bank's region remained strong in May, with the monthly production index posting its highest reading in more than a year. Expectations for future factory actitivty are also generally firm, and pricing continues to be relatively stable.
The bank's production index rose to 34 in May, up from 17 in April and 26 in March. The year-over-year production index also rose this month, to 54 from 39, while the future production index eased slightly, from 37 to a still-lofty 36.
"Although sample sizes make it difficult to draw firm conclusions about individual states, the data available suggest that production remained well above year-ago levels in all district states" the bank said.
The bank said its shipments index rose to 30 in May from 9 in April. Compared with a year ago, the shipments index stood at 43, up from April's 33.
On a month-to-month basis, the employment index slipped to 14, versus April's 18, while the new orders index hit 31, from 25 the prior month.
The prices-received index fell to 15 from 18 in April, while the prices paid index rose to 54 in May, from April's 47.
The Kansas City Fed district includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.