NEW YORK — Manufacturing activity in the Federal Reserve Bank of Kansas City’s district expanded at a “solid pace” in April, and the reading on employment reached its highest level in more than two years, according to data released by the bank Thursday.
The Kansas City Fed’s production index rose to 24 in a month- over-month comparison from 18 in March, well above any reading in the previous 12 months. From a year ago, the production index jumped to 14 from -1.
Readings above zero denote expansion.
The Kansas City district includes Colorado.
Manufacturers moderated their outlook somewhat. The April index covering production expectations for six months from now slipped to 22 from 33 in March. The employment-expectations index fell to 18 from 20.
But current-month readings looked strong. On a monthly comparison, the April shipments index climbed to 27 from 17. From a year ago, the index jumped to 15 this month from -5 in March.
The monthly comparison new-orders index rose to 15 from 12 in March, and on a yearly comparison, the orders index turned positive, rising to 19 from -3.
The April employment index rose to 5 from 3 in March. The April reading was the highest since January 2008. From a year ago, the index improved to -18 from -31.
Signs of inventory reductions returned this month. Kansas City-area manufacturers cut inventories of supplies, materials and finished goods. The drawdown in finished- goods inventories could reflect factories shipping out products in response to better orders.
