Manufacturing activity in December grew to its highest level in more than two years in a seven-state region monitored by the Federal Reserve Bank of Kansas City.
The Kansas City Fed reported in its latest month survey that its manufacturing index hit 11 in December, up from 1 in November and 6 in October.
“This was the highest composite reading in our survey since May 2014,” said Chad Wilkerson, a vice president and economist at the Kansas City Fed.
The manufacturing index monitors production, new orders, employment, supplier delivery time, and raw materials costs. The Fed surveys businesses in Kansas, the northern third of Missouri, Nebraska, Colorado, Wyoming, Oklahoma and northern New Mexico.
December’s growth also marked the fourth consecutive month of factory expansion in the region, the Fed noted. Moreover, it said business expectations for future activity also increased.
“We will finish the year up nicely,” one survey respondent said, while another noted that “the election brings some hope for lifting costly regulatory burdens and improving productivity.”