As expected, regional manufacturing declined. | So Good News

“In October, the index of commodity prices slowed and continued to decline compared to a year ago,” said Chad Wilkerson, the Fed’s Kansas City branch economist and vice president, and Oklahoma City branch executive authored in a report last week. For the Federal Reserve.

“Indices of finished goods prices fell slightly from a month ago and were down compared to last year’s levels. Expectations for future raw material and finished goods prices also moderated,” he said.

The monthly raw material price index slowed in October and continued to decline compared to a year ago, he said.

“The month-over-month composite index … was the lowest composite reading since May 2020,” Wilkerson said of the average for manufacturing. new order employment Supplier delivery time and raw material inventory indicators.

“The slowdown in factory growth in October was due to lower activity in computer and electronics, wood, basic metals, plastics and rubber manufacturing,” he said.

“Most indexes fell month-over-month in October, except for supplier delivery times and finished goods inventories.

Year-over-year factory index fell in October… (and) composite futures index fell… futures production; new orders; orders employee work week; new export orders; Importer delivery time; And the finished goods inventory index is moving into negative territory.”

Fed branch in Kansas City — includes the western third of Missouri; Oklahoma, Kansas, Colorado All of Nebraska and Wyoming; and the northern half of New Mexico — routinely asked business contacts who did not want to be named to comment on the situation.

Wilkerson said contacts were asked “special questions compared to pre-pandemic” about changes in their workforce and investments this month.

In October, 65% of firms reported that they were devoting significantly or slightly more resources to meeting skills needs, while 33% reported no change.

Due to labor shortages, 36% of businesses reported investing or planning to invest in labor-saving automation strategies at a faster pace than ever before.

In the same questions, 28% of companies plan to invest as much as they have in the past, and about 25% of companies report that they are not investing in labor-saving technology.

• “Prices paid for products through the roof. No relief. It is still difficult to find workers. The economy is still good – there are plenty of future growth opportunities sitting there, but they will be hard pressed to support the labor market.”

• “The overall labor force is still good. In September, the salary increase for all employees is above normal.”

• “We are improving productivity and efficiency. As I say, do more with less. We are getting a great response from our employees.”

• “The supply chain is better; Exporting abroad is cheaper and faster. It lowers the prices we pay for things.”

• “We still struggle to find competent and reliable staff. It severely hampers our ability to expand our business.”

• “We don’t have the capital for an automatic machine. We are more focused on our inventory availability.”

The Fed’s monthly survey “monitors manufacturing plants selected by geographic distribution, industrial mix and size. The survey results reveal changes in a number of manufacturing indicators, including production and exports, and identify changes in the prices of raw materials and finished goods. .”