The Kansas City Fed’s Tenth District Manufacturing Composite Index ticked up 1 pt to -3 in May, indicating continued mild contraction in activity.

• The Production Index fell -5 pts to -10, its lowest since December 2023.
• New Orders declined -4 pts to -15, and the Backlog of Orders fell -3 pts to -23.
• The Number of Employees Index rose 4 pts to 3, the first positive reading since January.
• Prices Paid for Raw Materials dropped -9 pts to 19, easing from recent highs, while Prices Received also declined -4 pts to 6.
• New Orders for Exports fell sharply to -21, the lowest level in at least a year.

• About half of firms (52%) reported their hiring plans for the remainder of 2025 have not changed since the beginning of the year, while 34% expect them to decrease and 14% expect to increase hiring plans.
• 60% of firms have not changed their capital expenditures plans since the beginning of the year, while 30% expect them to decrease and 10% expect them to increase.