The Kansas City Fed’s Tenth District Manufacturing Composite Index edged up 1 pt to -2 in June 2025, signaling continued contraction but slight improvement from May (-3) and April (-4).

• The Production Index rebounded to +5 (from -10), while Shipments rose to +6 (from -8). Both indicated that activity improved significantly in June.
• New Orders declined to -15 (from -12), and the Backlog of Orders dropped to -11 (from -8).
• Employment remained weak with the Number of Employees Index at -8 and Average Workweek at -12.
• Prices Paid for Raw Materials rose to +28 (from +19), and Prices Received for Finished Products increased to +21 (from +17), signaling renewed input and output price pressure.
• New Orders for Exports remained deeply negative at -20, indicating continued weakness in external demand.
• Firms’ future expectations improved, with the composite future index rising from 5 to 9, and one-third of firms reporting paused capital investment due to uncertainty.