The Kansas City Fed’s Tenth District Manufacturing Composite Index rose to +1 in July 2025 from -2 in June, signaling a slight improvement in activity despite broad sectoral weakness.

• Production dropped to -3 (from +5), while New Orders rose to -2 (from -9) and Shipments improved to +3 (from -6).
• Backlog of Orders plunged to -30 (from -11), the lowest reading in over a year.
• Employment softened further, with the Number of Employees Index at -11 (from -8), and the Average Workweek down to -18.
• Input cost pressures remained elevated, with Prices Paid for Raw Materials at +47 (up from +34), while Prices Received for Finished Products eased to +6 (from +9).
• Export orders remained weak at -15, and Inventories of Materials remained deeply negative at -17.