Kansas Fed Manufacturing Activity Stays Strong

The Kansas City Fed’s Manufacturing Production Index rose to 20 in September 2026, its highest reading since April 2022, up from 17 in the previous month. Both durable and nondurable manufacturing activity increased, driven primarily by plastics and rubber products and furniture-related products. Monthly activity was broadly stronger, with shipments increasing to 21 from 17, while the volume of new orders rose to 24 from 16, both a multi-month high. Employment was flat for a second consecutive month. Price pressures also intensified, particularly for raw materials. Compared with a year earlier, the manufacturing production index eased slightly to 19, while shipments increased to 23 from 13 and the volume of new orders fell to 22 from 23. Price pressures also increased further, while employment declined to -3 from 5. Over the next six months, activity is expected to remain in expansionary territory, although the index edged down to 9 from 20.

The Kansas City Fed’s Manufacturing Production Index stood at 17 in August 2026, the highest reading since April 2022, unchanged from the prior month. Nondurable manufacturing activity improved, driven primarily by paper and printing manufacturing, while growth in durable manufacturing slowed. All month-over-month indexes remained positive, except for new export orders, which fell to -2. Both employment indexes eased slightly from the previous month. Meanwhile, price pressures intensified, with prices paid for raw materials rising to 55 from 53 and prices received for finished products increasing to 36 from 33. Year-on-year, most indicators stayed positive, excluding new export orders, which fell to -9. Meanwhile, expectations for future activity remained expansionary, with the composite index rising to 20 from 19.

The Kansas City Fed’s Manufacturing Production Index climbed to 19 in June 2026 from 9 in the prior month, marking the highest reading since April 2022. Growth was observed in the durable manufacturing sector, led by transportation equipment, while the nondurable sector was driven by food manufacturing. Month-over-month readings were largely positive, aside from inventories. The new orders index remained in positive territory (13 vs 13), while shipments picked up to 20 from 7 and employment rebounded to 10 from -4. Also, new export orders moved to zero from -3, while supplier delivery times shortened to 16 from 24. Meanwhile, price pressures intensified, with prices paid for raw materials rising to 68 from 63 and prices received for finished products increasing to 33 from 29. Year-on-year, most indicators remained positive. Expectations for future activity remained expansionary with the composite index staying at 19.