2025.08.2815:23:18UTC+00Kansas City Fed Manufacturing Activity Flat in August

In August 2025, the Kansas City Federal Reserve's Manufacturing Production Index recorded a value of 0, an improvement from -3 in July, indicating stabilization in factory operations. This figure suggested that the overall state of manufacturing remained mostly stable. There was a slight downturn in nondurable goods manufacturing, particularly in printing, paper, and chemical sectors, while durable goods maintained a steady performance. Key metrics, which had previously been on a downtrend earlier in the summer, saw a modest uptick: production, shipments, and new orders experienced slight month-over-month growth. However, backlogs continued to be weak, showing a significant decline. Employment saw a slight increase, though there was a decrease compared to the same period the previous year, and inventories diminished. Measures of production, backlogs, and the average employee workweek showed slight improvements, while employment showed a year-over-year decrease. Price levels remained high, and plans for capital expenditure were generally optimistic. Looking forward, the future composite index rose from 8 to 11, reflecting cautiously optimistic expectations for upcoming production, orders, and shipments.