of the Kansas City Federal Reserve’s monthly survey of regional manufacturing activity are out.
The headline index unexpectedly rose to 6 from September’s 2 reading. Economists expected no change.
In September, the index unexpectedly plummeted to 2 from August’s 8 reading.
The Kansas City Fed survey polls manufacturers across Kansas, Nebraska, Oklahoma, Colorado, Wyoming, northern New Mexico, and western Missouri on business conditions.
Below are comments from survey respondents:
- “General labour is still very hard to find. Help wanted signs are up everywhere around us. Starting wage ranges anywhere from $US9.50 to $US12.50 an hour and still no applicants.”
- “Orders for compressor packages to transport natural gas continues at a record pace. A significant number of packages are destined for the shale formations in Pennsylvania and Ohio.”
- “As an agricultural equipment manufacturer, we reduced our production schedule this week and are looking for ways to reduce hours, inventory, and capital expenditures.”
- “We are not able to get labelling information as all the websites are down. Any labels in process are on hold.”
- “The USDA Market Information that is the basis for supplier prices to us was not available. A small portion of our sales go to military base grocery stores, which have halted.”
- “We are receiving more notices of impending price increases. Previously most increases have been pass-through of commodities and transportation costs. Recently, prices are increasing due to increased labour costs and taking advantage of increased demand.”
- “We have experienced military shipment approval delays, stoppage of aircraft registration, and the inability to communicate with the government for critical timing of shipments.”
- “We are struggling to find help and we are losing employees to the oil and gas businesses due to their ability to pay significantly higher wages.”
- “The government shutdown has affected our business both in terms of direct production on government contracts as well as ancillary services/support provided by the government needed for international business. These services include issuance of visas for foreign customers and processing of legalization documents required on letter of credit draws.”
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