FX.co ★ Kansas City Fed Manufacturing Index Eases in December

The Kansas City Federal Reserve's Manufacturing Production Index decreased to -3 in December 2025, down from a more than three-and-a-half-year peak of 18 in November. This shift signifies the first contraction in the manufacturing sector since July; however, the decline remains mild. Growth slowed in both durable and nondurable manufacturing sectors, primarily driven by downturns in the production of food, metal, and transportation equipment. The month-over-month indices presented a mixed picture: both production and employment dipped slightly into negative figures following previous robust performance, while shipment and new order volumes remained steady at 0. When looking at year-over-year figures, most indices were negative and showed a decline compared to last month. Production and shipments experienced a downturn, and employment decreased from 5 to -7. On the other hand, capital expenditures increased from 9 to 14, and new orders rose from -3 to 2. Despite these mixed results, expectations for future activity stayed optimistic, with the composite index moving up from 9 to 13.