WASHINGTON - Manufacturing activity slowed noticeably in June in the Tenth District, according to the Kansas City Federal Reserve.
The net percentage of firms reporting month-over-month increases in production in June was -2, down from 20 in May. Production decelerated at both durable- and non-durable-goods-producing plants.
The shipments index dropped drastically from 18 to -1, its lowest level in over 5 years. New orders for exports index held steady, however, and the order backlog index increased from 0 to 13. Both inventory indexes rose for the second straight month, which may have contributed to the drop in production.
The capital expenditures index dropped for the second straight month, while the employment index held steady at 23. The raw materials inventory index declined from 31 to 25, and the finished goods inventory index remained relatively unchanged.
Price indexes in the survey generally moderated in June, after recording slight gains last month. The month-over-month raw materials price index edged down from 43 to 39, while the finished goods price index was unchanged.
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