The Federal Reserve Bank of Kansas City recently released its Manufacturing Survey for June. The survey revealed that Tenth District manufacturing activity continued to decline, and expectations for future activity continued to drop as well.
“Regional factory activity declined further in June,” Chad Wilkerson, senior vice president at the Kansas City Fed, said in a June 22 news release from the Bank. “District firms’ expectations for future activity fell to their lowest levels since April 2020, although firms were still fairly optimistic about employment levels.”
The survey showed that the month-to-month composite index was -12 for June, which was down from -1 in May and from -10 in April. It noted that the decrease was driven both by durable and nondurable goods, especially by print manufacturing and primary metals. The month-to-month indexes remained negative, but the pace of the declines accelerated in June. The indexes for production, number of employees, volume of shipments, supplier delivery time and inventories all declined at faster rates. Factory indexes decreased further in June from 2022 levels, and the composite index dropped from 6 to -12. The future composite index fell from 2 to -2, its lowest level since April 2020.
The composite index is an average of production, new orders, employment, raw materials inventory and supplier delivery time, the survey said.
The Tenth Federal Reserve District, which includes all of Kansas, Nebraska, Colorado, Oklahoma and Wyoming; the western third of Missouri; and the northern half of New Mexico, is serviced by the Federal Reserve Bank of Kansas City, the news release said. The Kansas City Fed participates in making national monetary policy as a member of the Federal Reserve. It oversees and regulates a large number of commercial banks and bank holding companies, and it also offers financial services to depository institutions.
The Bank posts a summary of historical data, results from past surveys and release dates for future surveys on its website. It also has other information about the Fed and its role in economic policy.
