Growth in Tenth District manufacturing activity edged higher in September. Expectations moderated slightly, but producers on net still anticipated increased activity over the next six months. Price indexes moved up modestly, with slightly more producers planning to raise selling prices. The month-over-month composite index was 6 in September, up from 3 in August and 3 in July. The increase was mainly concentrated in durable goods plants, particularly for aircraft and computer equipment, while nondurable goods producers reported a continued slowing in activity. Most other month-over-month indexes also improved modestly in September.
The production index rose from minus 2 to 3, and the shipments, new orders, and order backlog indexes also edged up. The employment index increased for the second straight month, but the new orders for exports index fell slightly after rising last month. Both inventory indexes increased somewhat.
Price indexes increased slightly after generally easing in recent months. The month-over-month raw materials price index edged up from 28 to 30, and the finished goods price index also increased.
Most future factory indexes eased further in September, but producers on net still expected factory activity to rise heading forward. The future composite index edged down from 9 to 6, and the future shipments and new order indexes also fell but remained in positive territory. The future capital expenditures index dropped from 18 to 5, and the future employment index also eased. However, the future production index was unchanged, and the future order backlog index inched higher. The future finished goods inventory index rose slightly from minus 6 to minus 5, while the future raw materials inventory index fell further.
Recent History Of This Indicator
The Kansas City Fed manufacturing index posted at 3 in August, unchanged from 3 in July and down from 14 in June. The production index fell from 2 to minus 2, and the shipments index also moved into negative territory. However, the new orders index rebounded to plus 1 from minus 5 in July.