The Kansas City Federal Reserve reported a further decline in its Manufacturing Index, which slipped from -5 in April 2025 to -10 in May 2025, indicating a deepening contraction in the sector. Released on May 22, 2025, the latest figures signal continued challenges for manufacturers in the region.
The index measures manufacturing activity in the Federal Reserve's Tenth District, which includes western Missouri, Kansas, Colorado, Nebraska, Oklahoma, Wyoming, and northern New Mexico. A negative index implies a contraction in the region’s manufacturing sector, with May's decline suggesting heightened pressures possibly due to a combination of factors including reduced demand and persistent supply chain issues.
Manufacturers in the district are grappling with an intensifying downturn, as evidenced by the substantial drop from April's already negative figure. This trend adds to concerns about the resilience of the sector amidst broader economic uncertainties. Stakeholders are keenly observing potential policy interventions or macroeconomic changes that could help mitigate these challenges moving forward.
