Kansas City Fed: Tenth District
Manufacturing activity in the Tenth Federal Reserve District grew at a faster pace in August, with the composite index rising to 10 from 9.
Manufacturing activity in the Tenth Federal Reserve District grew at a slightly faster pace in August. The month-over-month composite index increased to 10, up from 9 in July, according to a survey from the Federal Reserve Bank of Kansas City. For a detailed look at the data, see our stats page.
Expectations for future activity remained unchanged at 20. The overall uptick was driven by gains in paper and printing manufacturing, which offset a slowdown in the growth of durable goods manufacturing.
All major indices were positive in August, with the exception of exports. The index for new orders for exports declined from -1 to -2.
Key Activity Indices
The production index held steady at 17. Shipments saw a slight decline.
| Index | August Value | Change from July |
|---|---|---|
| Production | 17 | Unchanged |
| Shipments | 17 | Down from 20 |
| New Orders | 16 | Up from 10 |
| Employment | 0 | Down from 2 |
| Backlog of Orders | 4 | Up from 2 |
New orders showed notable strength, rising from 10 to 16. The employment index, however, slipped from 2 to 0. The backlog of orders index increased slightly to 4.
Price Pressures
The pace of growth for both input and output prices strengthened in August. The index for prices paid by manufacturers moved up from 52 to 55. The index for prices received increased from 28 to 36.
These month-over-month increases contrast with the year-over-year trend. Compared to a year ago, the indices for prices paid and prices received have fallen significantly. They decreased to 87 and 69, respectively.
Production and Labor Dynamics
In a special set of questions, the Kansas City Fed asked firms about factors enabling increased production and about employee turnover.
Nearly 39% of surveyed firms identified technology improvements as the primary factor allowing them to boost production without hiring additional workers. Reduced turnover was cited by 22% of respondents. Outsourcing was mentioned by 8%.
A notable 18% of firms reported they were not able to increase production without adding more workers.
When asked specifically about employee turnover, 35% of firms reported levels lower than typical. Twenty-one percent experienced higher-than-typical turnover. The remaining 44% saw no change in turnover levels. This data is part of our broader economic standings.
The Tenth Federal Reserve District includes the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma, and Wyoming; and the northern half of New Mexico.
