26.06.202515:47:27UTC+00Kansas City Fed Manufacturing Index Hits 22-Month High

The Kansas City Fed's Manufacturing Production Index experienced an upswing, reaching a level of 5 in June 2026, a significant recovery from its -10 position in May and marking the highest point since August 2023. This increase indicates a revival in factory activity, primarily bolstered by enhanced output in sectors such as nonmetallic mineral and petroleum product manufacturing. However, the recovery was partly hindered by continued challenges in the metals and transportation equipment industries. While production and shipments showed modest growth, new orders and employment witnessed a decline. The ongoing shrinkage in backlogs signals a persistent softness in demand. As a result, manufacturers faced heightened price pressures, especially concerning raw materials, necessitating a rise in selling prices. Despite the subdued present conditions, optimism about the future is evident as the future composite index climbed to 9 from 5, with firms projecting an increase in production and orders over the coming six months.