Factories in the Kansas City Fed region still feeling pinch of oil, agriculture declines

The Federal Reserve Bank in Kansas City said that regional manufacturers reported their activity fell again in January, although their expectations for the future remained solid and prices fell somewhat.

Manufacturers in the region have been plagued by the sharp drop off in demand coming from the oil, gas and agriculture industries, as well as a drop in demand from foreign buyers caused by the rising value of the dollar. Factories making nondurable goods saw a slight increase, but durable goods makers saw further weakening, especially for machinery and computer and electronic equipment.

The district includes Kansas, Oklahoma, Nebraska, Colorado, Wyoming, the western third of Missouri and the northern half of New Mexico.

This story was originally published January 28, 2016 at 11:06 AM with the headline "Factories in the Kansas City Fed region still feeling pinch of oil, agriculture declines."