Manufacturing in the Tenth region - Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico, and western Missouri - plummeted in September, falling sharply to a -9 reading from the prior month's +6 level, according to the Kansas City Fed's manufacturing activity index.
The decline was led by a major decrease in new orders, which fell to -14 from a previous +9 reading. Shipments also saw a big drop to -8, down from +2 in August.
The number of employees component fell to -7 from a neutral reading.
On the plus side, prices paid moderated to +38 from +53, which still indicates prices are on the advance for most firms. Prices received for finished goods also fell back to +20, down 10 points from August.
The Kansas City index is the fourth regional Federal Reserve survey to be released this month. The previous three saw contrasting results. The NY Fed's Empire State report came in worse than anticipated, falling to -7.4 from a previous +2.8 reading. The Philly Fed index, however, rebounded into growth after nine months of slowdown. Most recently, the Richmond Fed survey slowed for the third straight month, with all broad components in negative territory.
By Patrick McGee and edited by Nancy Girgis
©CEP News Ltd. 2008