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US: Kansas City Fed Manufacturing Index
| Actual | Previous | |
| Level | 8 | 10 |
Highlights
Kansas City Fed district manufacturing activity continues its slow expansion in May from April. The Kansas City Fed composite index of current business conditions is at 8 in May versus 10 in April and 11 in March, and up from -3 in May 2025.
The current new orders index rises to 13 in May from 12 in April and 15 in March. The number of employees index drops to minus 4 in May from 2 in April and 7 in March. Prices paid comes in at 63 in May, 63 in April and 37 in March, suggesting heavy ongoing input price inflation.
Definition
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.
Description
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.
