Regional manufacturing, services activity expand

Image
  • Manufacturing
Body

KANSAS CITY, Mo. – The latest services survey performed by the Federal Reserve Bank of Kansas City revealed a modest increase in services activity last month in a seven-state region that includes Oklahoma, but the level was still much lower than a year ago. Meanwhile, expectations for future activity rebounded.

A companion Federal Reserve survey showed that manufacturing activity in the Tenth District increased moderately from July but remained below year-ago levels, while expectations for future activity expanded further.

“In August, services activity continued to grow but lagged year-ago levels considerably,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.

The Kansas City Fed’s monthly survey of Tenth District services provides information about several indicators of activity, including sales, revenue, employment and capital spending, while identifying changes in prices of input materials and selling prices.

Survey participants represent a variety of industries, including retail and wholesale trade, automobile dealers, transportation, information, high-tech and professional services, real estate, education, restaurants, health services, tourism and other services firms.

The manufacturing survey indicated regional factory activity “increased more in August than in June and July, but it was still below year-ago levels,” Wilkerson said.

Most firms contacted in both surveys said government programs had affected their business positively over the past three months, “but a majority of firms also reported challenges rehiring furloughed or laid-off employees due to the extra CARES Act unemployment benefits,” Wilkerson said.

The Kansas City Fed serves the Tenth Federal Reserve District, encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico.

As part of the nation’s central bank, the bank participates in setting national monetary policy, supervising and regulating numerous commercial banks and bank holding companies, and providing financial services to depository institutions.