FX.co ★ Kansas City Fed Manufacturing Index at 7-Month High

The Manufacturing Production Index of the Kansas City Fed increased to 1 in March 2025, marking its highest point in seven months, compared to -13 in February. Despite this rise, the survey indicated that manufacturing activity within the Tenth District experienced a slight decrease, with future activity expectations diminishing yet still suggesting growth. Production levels remained steady; however, employment figures continued to fall, and nearly half of the firms reported tightened profit margins over the past year. The nondurable manufacturing sector, particularly food, paper, and printing, was primarily responsible for these declines. Several month-over-month indexes were in negative territory, although many showed improvement from the previous month's figures. Production held steady this month after experiencing moderate declines recently, while the pace of decline for both employee numbers and shipment volumes slowed in March. Meanwhile, the average employee workweek reached its highest rate in over a year. The volume of new orders and export orders continued their downward trend this month.