Manufacturing Activity in Central U.S. Drops Sharply at Start of Year
26 January 2024 - 3:44AM
Dow Jones News
By Joshua Kirby
Factory activity in the central U.S. contracted again in January
and at a faster rate than previously, though firms expressed a
brighter outlook for the coming months.
The Federal Reserve Bank of Kansas City said Thursday that the
Tenth District manufacturing survey's composite index was minus
nine in January, falling sharply from minus one in the last month
of 2023. Any reading below zero suggests activity contracted from
the previous month.
The Kansas City Fed survey gauges manufacturing activity in the
western third of Missouri, all of Kansas, Colorado, Nebraska,
Oklahoma and Wyoming, and the northern half of New Mexico.
All components of activity fell on month, except prices, with
production and new orders dropping at a faster rate than
previously, while employment was largely stable.
Future expectations conversely ticked higher, with the future
composite index increasing to 11 in January from five in December
as firms see increased production and shipments in the next six
months.
Uncertainty around inflation and demand continues to dog
businesses in the region, one respondent said. "We are being
optimistic and planning on growth, but we don't have the visible
indicators to support that plan in the market today," the
manufacturer said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
January 25, 2024 11:29 ET (16:29 GMT)
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