Manufacturers in the Plains states reported slightly weaker
economic conditions this month, according to a regional Federal
Reserve bank report released Thursday. Comments suggest a rising
shortage of skilled labor.
The Kansas City Fed's manufacturing composite index slipped to 7
in April after it rebounded to 10 in March from 4 in February. A
reading above zero denotes expansion.
On a year-over-year comparison, the April composite index
increased to 14 from 12.
"Regional factory expansion was not quite as strong in April as
in March, when better weather provided a boost," said Chad
Wilkerson, an economist at the Kansas City Fed. "But April's
numbers were otherwise the best in nearly two years, and firms were
generally optimistic."
The subindexes slowed in April after posting high March numbers
that reflected a catch-up in activity after the harsh winter.
The production index fell to 12 in April from a three-year high
of 22 in March, but the April reading is far better than the
contractionary numbers seen in December and January.
The shipments index declined to 14 from an eight-month high of
16.
The new orders index dropped to 9 after it more than doubled to
13 in March from 5 in February. The backlog index improved to 4
from -1 last month.
The employment index increased to 3 from 0. The workweek index
doubled to 6 from 3.
The comments contained in the Kansas City Fed report show some
manufacturers in the Plain states are having trouble finding
skilled labor. That echoes the results of other surveys.
"We have many available jobs for truck drivers, some production
supervisory personnel, and technical/electrical roles. We are
challenged finding good people with the right skill sets," said one
respondents cited in the report.
Cost pressures also are building. The prices-paid index
increased to 21 in April from 16 last month. The prices-received
index fell sharply to 2 from 10.
Manufacturers are more upbeat about the next six months.
The composite expectations index jumped to 21 from 11. The
future employment index increased to a three-month high of 22 in
April from 2 in March.
The Kansas City Fed district includes Colorado, Kansas,
Nebraska, Oklahoma, Wyoming, northern New Mexico and western
Missouri.
Write to Kathleen Madigan at kathleen.madigan@wsj.com
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