The Kansas City Federal Reserve Bank said manufacturing activity in its 10th District eased more in November but production and capital spending are expected to rise modestly in the next few months, according to its monthly survey of regional manufacturers.
“We saw a decline in regional factory activity for the second straight month, and firms have put hiring plans on hold for the next six months” said Chad Wilkerson, vice president and economist at the Kansas City Fed, in a news release Thursday.
The Fed said several respondents specifically noted concerns about the so-called “fiscal cliff” and the effects of Hurricane Sandy for a slowdown in orders from and delayed deliveries to the East Coast.
The pullback among manufacturers was largely among durable goods producers, the Fed said. Nondurable goods producers saw a small increase in activity for the month, the Fed said.
The Kansas City Fed’s district encompasses the western third of Missouri, Kansas, Colorado, Nebraska, Oklahoma, Wyoming and the northern half of New Mexico.