Manufacturing activity in the Tenth Federal Reserve District remained in contraction territory in September as activity at durable goods plants continued to decline, according to latest survey results from the Federal Reserve Bank of Kansas City.
The Kansas City Fed's month-over-month composite index rose to negative 2 in September from negative 6 in August. The composite index is an average of indexes measuring production, new orders, employment, supplier delivery time and raw materials inventory.
The Kansas City Fed said manufacturing activity dipped at factories that make nonmetallic mineral products, primary metal, computer and electronic products, and transportation equipment.
Some survey respondents quoted by the Kansas City Fed in its report said tariffs were stalling their capital spending plans and new customer growth.
The composite index gauging expectations for future manufacturing activity fell to 5 from 9, the lowest reading since May 2016.
The Fed's Tenth District includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, the western third of Missouri, and the northern half of New Mexico.
