FX.co ★ Kansas Fed Manufacturing Activity Growth Slows

The Kansas City Fed’s Manufacturing Production Index eased to 16 in October 2026, down from 20 in September, when it reached its highest level since April 2022. Growth in both durable and nondurable manufacturing slowed modestly, though printing activity remained particularly strong. Most month-over-month indicators stayed in positive territory, with two notable exceptions: the backlog of orders index dropped to -5 from 13, and the new export orders index declined to -9 from 0. While many indicators posted lower readings than in September, the employment, supplier delivery time, and materials inventory indexes all increased. On the pricing side, growth in raw material costs continued to accelerate, whereas the pace of price increases for finished goods moderated. Looking ahead, expectations for future activity improved, rising to their highest levels since July 2022.