Manufacturing activity in the Kansas City Federal Reserve Bank’s 10th District contracted in February, with some manufacturers attaching the blame to winter storms and sequestration concerns.
“Factory activity fell more sharply in February than in previous months,” said Chad Wilkerson, Kansas City Fed vice president and economist, in a news release Thursday. “Some contacts cited disruptions due to bad weather, and many firms noted that possible federal spending cuts were hurting business,” said Wilkerson. “However, capital spending plans for later in the year improved considerably.”
The survey is based on 104 responses from manufacturers in the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico, the Fed said.