The latest Manufacturing Survey taken by the Federal Reserve Bank of Kansas City showed manufacturing activity declined in December in Oklahoma and the other states that make up the Tenth District of the bank.
According to Megan Williams, associate economist and survey manager, the decline was modest.
“Regional factory activity fell slightly this month, although it is down substantially again from this time last year,” said Williams. “However, employment grew modestly, and firms’ outlook for production and new orders is optimistic.”
She said the survey found that prices increases accelerated from last month and raw materials prices continued to increase at a faster pace than finished production prices. The Bank’s month-over-month composite index was down from November to December. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes.
Nondurable goods manufacturing was basically flat while durable goods declined somewhat, driven by wood, mineral, and primary metal manufacturing. Most month-over-month indexes were negative.
Employment and capital expenditures are also expected to grow in the next six months.
This month contacts were asked about worker productivity. 57% of firms reported the productivity of their average workers has not changed in the past year, while 19% reported less productive workers and 25% reported more productive workers. Contacts were also asked how reliant their firms are on immigrant workers. 69% of firms said they are not reliant on immigrant workers, while 12% reported they are slightly reliant, 13% reported they are somewhat reliant, and 6% reported they are very reliant.
Selected Manufacturing Comments
“Business levels are still tough through the end of the year. Hoping for improvement, some of which is limited to our circumstances, but overall improvement is wanted.”
“Comparing May 2024 to what we think May 2025 will be like, May 2025 will have less volume, and margins will likely be challenged.”
“Strong dollar has slowed exports.”
The Kansas City Federal Reserve Bank serves the Tenth District which consists of Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico, and Western Missouri.
