US Kansas Fed Manufacturing Slows Slightly in April

The Kansas City Fed’s Manufacturing Production Index edged down to 10 in April 2026 from a four-month high of 11 in March, signalling a slight slowdown in factory activity. Durable goods manufacturing declined, while nondurable production increased further, driven mainly by food manufacturing. Month-over-month readings were broadly positive, except for export orders and employment. On a year-over-year basis, most indicators remained positive, though backlog of orders, employment, and materials inventories were negative. Looking ahead, expectations for future activity improved, with the composite index rising from 16 to 18, as projections for production and new orders strengthened further.

The Kansas City Fed's Manufacturing Index edged up to 11 in March 2026, an increase from 10 in February. Both durable and non-durable production increased, led by wood products on the durable side and by paper, plastics, and rubber on the non-durable side. The month-over-month composite index rose to 11, up from 5 in February. Most indicators remained in positive territory, with the exception of new export orders, which declined from 0 to -4. The number of employees index rebounded to 7 from -6. Year-over-year indexes were mixed: new orders for exports, number of employees and finished goods inventory remained negative, while backlog of orders and the average employee workweek rebounded to positive territory. Other indicators continued to post positive readings, although capital expenditures declined to 5 from 8. Looking ahead, expectations for future activity strengthened further, with the index rising to 16 from 15.

The Kansas City Fed’s Manufacturing Production Index surged to 10 in February 2026, rebounding from -2 in January, signaling renewed output growth. Future activity expectations edged higher, with employment outlooks also improving. Input and finished goods prices cooled moderately, suggesting easing inflationary pressure in the sector. Meanwhile, the composite index which is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes, rose to 5 from 0. Nondurable manufacturing activity declined further, while durable manufacturing activity edged higher, driven by primary metal and electrical equipment manufacturing.