TOPEKA, Kan. —Factory activity in the region including Kansas saw a further decline in April, according to the latest manufacturing survey from the Kansas City Federal Reserve Bank.
Expectations for future activity remain flat, said Chad Wilkerson, senior vice president at the Federal Reserve Bank of Kansas City.
“Regional factory conditions declined again in April, marking its 19th consecutive month of flat or falling activity,” Wilkerson said. “Firms decreased capital expenditures slightly from this time last year as they continue to face margin compression.”
Prices of raw materials grew at a steady pace while finished product prices stayed the same, increasing their spread.
The month-over-month composite index was -8 in April, up from -7 in March and -4 in February. The composite index averages production, new orders, employment, supplier delivery time, and raw materials inventory indexes.
Activity declined somewhat for both durable and nondurable goods, with food, metals, electrical equipment, and paper manufacturing driving the decrease.
Production and volume of shipments fell further from last month, while declined in new orders and backlogs moderated.
The number of employees and employee worked indexes were essentially flat at -2 and -3.
“We need good workers in low- and mid-level skill set. We just can’t find enough in our area. We currently have nine positions open and are struggling finding the right skill level,” said one manufacturer who took part in the survey.
Index Decreased Compared to Last Year
The year-over-year index for factory activity decreased further to -12 from -4 in April 2023.
The pace of decline slowed in the supplier delivery time and raw materials inventory indexes, while volume of shipments and number of employees grew.
The capital expenditures index reached -6, its lowest level since August 2020.
The Federal Reserve Bank of Kansas City surveys the Tenth Federal Reserve District, which includes all of Kansas, the western third of Missouri, Colorado, Nebraska, Oklahoma, Wyoming, and the northern half of New Mexico.
