The Kansas City Fed’s Manufacturing Index inched up to 11 in March 2026, from 10 in February, reflecting broad-based gains in both durable and nondurable goods production. Among durables, wood products posted the strongest increases, while paper, plastics, and rubber led growth in nondurables.
On a month-over-month basis, the composite index advanced to 11, compared with 5 in February. Most components remained in positive territory, though new export orders slipped from 0 to -4. The number of employees index staged a notable rebound, rising to 7 from -6.
Year-over-year readings were mixed. New orders for exports, the number of employees, and finished goods inventories stayed in negative territory, while the backlog of orders and the average employee workweek turned positive. Most other indicators continued to record positive values, although capital expenditures eased to 5 from 8.
Looking ahead, manufacturers’ expectations for future activity strengthened further, with the forward-looking index edging up to 16 from 15.
