News & Insights

Manufacturing activity was mostly unchanged in the Tenth District in August, with the month-over-month composite index at 1, the same as July. Meanwhile, expectations for future activity remained expansionary, rising 3 points to 11. The Tenth Federal Reserve District encompasses the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. Durable manufacturing activity was relatively flat month-over-month, while nondurable manufacturing activity declined slightly. New orders increased modestly, while production ticked up. Shipments rose, and at a faster pace than the prior month, rising from 3 to 6.

Production improved from -3 to 0, while new orders inched up from 2 to 5. New export orders remained negative, staying the same at -15. Employment remained flat in August, rising from -11 to 0, and the average employee workweek turned positive, increasing from -9 to 3, indicating more hours worked. Backlog of orders remained negative but improved from  -30 to -15. Prices received for finished product grew from 18 to 21, while prices paid for raw materials eased month-over-month, slipping from 47 to 43. Over the year, both prices received and prices for raw materials rose from 58 to 61 and from 67 to 69, respectively.

In July, survey respondents were asked about changes in purchasing activity and product demand expectations, and the responses were mixed. Thirty-six percent of firms reported slight decreases in purchase volumes compared to the previous quarter, while 9% noted a significant decline. Meanwhile, 17% cited no change and 34% reported a slight increase. Just 3% of respondents noted a significant increase. When firms were asked about customer purchases and services, 34% reported a slight decrease, while 27% noted no change. On the other hand, 24% cited a slight increase in customer purchases, while 2% reported a significant increase. Conversely, a higher share (13%) noted a significant decrease.