Tenth District manufacturing activity was little changed in December, with the composite index at +1 (Nov: +8; Oct: +6), indicating cooling momentum after recent gains.

• The month over month composite index slipped to +1 in December from +8 in November, reflecting softer conditions across both durable and nondurable manufacturing.

• Production fell to -3 (Nov: +18), while employment declined to -4 (Nov: +11), showing a pullback after strong readings in the prior month.

• Volumes of shipments and new orders were unchanged at 0, indicating flat demand and output flows relative to November.

• Backlogs of orders remained negative at -2 (Nov: -4), suggesting continued limited accumulation of unfilled demand.

• Prices received for finished goods rose to +22 (Nov: +13), and prices paid for raw materials stayed elevated at +40 (Nov: +36), with input costs continuing to rise faster than selling prices.

• Supplier delivery times increased to +8 (Nov: +15), remaining positive and consistent with some delivery delays.

• Expectations for future activity improved, with the future composite index rising to +13 (Nov: +9), as future production, new orders, and employment indexes all strengthened despite mixed expectations for 2026 capital expenditures.