A Wal-Mart Stores Inc employee works in one of the company’s distribution centers in Bentonville, Arkansas. (Photo: Reuters)
The Kansas City Federal Reserve Bank said their gauge of manufacturing activity in the Tenth District came in at 23 in October, stronger than the 17 median forecast. The headline composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes.
Expectations about future activity improved even further from already strong readings in September and August, while current factory activity increased strongly at both durable and non-durable goods plants. Food, plastics, computer and electronic products showed the strongest gains.
“Factory activity accelerated further in our region this month, posting its highest composite reading since 2011,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.
New orders lead the way in the report at 27 followed by an extraordinary 16-point increase in backlog orders to 23.
The future composite index increased from 26 to 32, while the future raw materials inventory index ticked up from 19 to 22. Future finished goods inventory index increased moderately.
Even though the year-over-year finished goods price index slid slightly from 38 to 33, the year-over-year raw materials price index increased to its highest since May 2014. The future finished goods price index rose from 29 to 32, and the future raw materials price index increased to 43.
