KC Federal Reserve Says Manufacturing Production Down, Expectations Up

Index has fallen two straight months.

The manufacturing outlook in the middle of the country remains murky.

The Kansas City Federal Reserve said Thursday the net percentage of firms reporting month-over-month increases in production in December was 4, down from 6 in November and 9 in October. However, most other indexes for future factory activity increased in December.

The future shipments index edged up to 30 from 24, and future order backlog, employment, and new order export indexes all increased for the second straight month. In addition, the capital expenditures index rebounded to 29 from 16 and the supplier delivery time index also rose slightly.

Both inventory indexes edged up after recording two-year lows, while the future new orders index declined slightly from 22 to 19.

The price indexes in the survey all decreased or remained relatively unchanged. The month-over-month finished goods price index declined to its lowest level in over a year, while the raw materials price index increased only slightly, to 31 from 27.

The Kansas City Federal Reserve District encompasses Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico, and western Missouri.

More in Supply Chain