Falling oil prices slowed manufacturing growth in the region, although manufacturers’ expectations for the future remained solid, according to the Kansas City Federal Reserve Bank’s January survey.
Most price indexes were lower than last month, especially for finished goods prices.
A drop in production in some durable goods categories, particularly electronics, machinery and metal products, caused the slowdown. The weakest activity was in energy-dependent Oklahoma. Some producers said that most of benefits of falling oil prices will only be felt over time.
The district includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, the western third of Missouri and the northern half of New Mexico.