Regional manufacturing activity climbs for the third consecutive month

05/22/2014 10:05 AM

06/03/2014 10:17 AM

Manufacturing activity in the region grew in May, marking the third consecutive month of solid expansion, according to a survey Thursday from the Federal Reserve Bank of Kansas City.

The Kansas City Fed said its monthly manufacturing index climbed to a reading of 10 this month, up from 7 in April and equal to 10 in March. The index measures production, new orders, employment, supplier delivery time and raw materials.

Chad Wilkerson, vice president and economist at the Kansas City Fed, said the “solid growth at factories in the region followed some weather-related weakness in previous months.”

In addition to the boost in orders, Wilkerson said more companies reported raising prices in May compared with previous months.

Looking ahead, businesses expect future factory activity “to remain at healthy levels,” Wilkerson said.

The survey covers the seven-state area of Kansas, the northern half of Missouri, Nebraska, Colorado, Wyoming, Oklahoma and northern New Mexico.

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