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Manufacturing expanded in the midwest, the Kansas City Federal Reserve announced this morning.The composite index measuring manufacturer activity in the tenth district surged to a reading of 7, against last month’s revised figure of -2 and the highest reading since October.
“Factory activity in our region resumed its moderate pace of growth in January, as orders rebounded from a dip in December,” Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City, said. “Plant managers also anticipate solid growth heading forward, despite some acceleration in input prices.
The Federal Reserve noted that activity increased across both durable and non-durable good factories, on demand for metals, chemicals and aircraft. The new orders index climbed out of the negative, to reach a reading of 8, while order backlog hit its first positive note in seven months.
“Expectations for future factory activity remained solid, although the pace of growth slowed for some indexes,” the bank noted. “The future composite index was unchanged at 12 for the third straight month, while the future production index rose considerably.”
Raw material prices also climbed in the region, with the index jumping from 27 to 42.
The total composite index culls data from separate production, new order, employment, delivery, and raw material indexes.