An altogether uninspiring Kansas City Fed manufacturing report with the index at minus 4 in April compared with minus 2 in March. New orders continue to decline at minus 11 versus minus 12 in March. Employment falls faster at minus 11 versus minus 4.

Survey participants, responding to special questions, report elevated uncertainty about the business outlook and more saw future customer orders falling, presumably in response to the tariff situation. Six-month capex index drops to minus 10 in April from 13 in March.

The Kansas City Fed index offers a monthly assessment of change in the region's manufacturing sector. Positive readings indicate monthly growth and negative readings monthly contraction. Readings at zero indicate no change. The headline number is the composite index, an average of the production, new orders, employment, delivery time, and raw materials inventory indexes.

Investors track economic data like the Kansas City Survey of Manufacturers to understand the economic backdrop for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers a moderate growth environment that will not generate inflationary pressures. The survey gives a detailed look at Tenth District's manufacturing sector, how busy it is and where it is headed. Some of the survey indexes also provide insight on inflation pressures—including prices paid, prices received, wages & benefits, and capacity utilization. The equity market is also sensitive to this report because it is an early clue on the nation's manufacturing sector, reported in advance of the ISM manufacturing index and often in advance of the NAPM-Chicago index.