Kansas City Fed Manufacturing Index Eases in December

2025-12-18 16:10 By Luisa Carvalho 1 min. read

The Kansas City Fed’s Manufacturing Production Index fell to -3 in December 2025, from an over 3-1/2-year high of 18 in November, marking the first contraction in manufacturing since July, albeit mild.

Growth in both durable and nondurable manufacturing eased from last month, led by declines in food, metal, and transportation equipment production.

Month-over-month indexes were mixed: production and employment slipped slightly into negative territory after strong readings in the previous month, while shipment and new order volumes remained unchanged at 0.

Year-over-year indexes were mostly negative and lower than last month, with production and shipments declining and employment falling from 5 to -7.

In contrast, capital expenditures rose from 9 to 14, and new orders ticked up from -3 to 2.

Expectations for future activity remained positive, with the composite index increasing from 9 to 13.



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