2025.04.2415:23:32UTC+00Kansas City Fed Manufacturing Index Drops in April

The Kansas City Federal Reserve reported a decrease in its Manufacturing Production Index, which fell to -5 in April 2025 from 1 in March. The survey highlighted a modest decline in manufacturing activity within the Tenth District. Although expectations for future activity have tempered, they continue to show potential for expansion. The production output fell, reflecting a continued downturn in employment, with nearly 50% of businesses indicating tighter profit margins over the past year. The nondurable goods sector, especially in food, paper, and printing, was primarily responsible for these declines. While most month-over-month indices showed negative trends, a few indicated slight improvements from the previous month. After recent moderate enhancements, production witnessed a decline this month. The number of employees and shipment volumes also experienced modest reductions in April, and the average employee workweek shortened, counteracting the gains observed in the previous month. Additionally, both new orders and exports experienced a downturn, although the rate of new order decline was slower than in March.