18.12.202516:00:00UTC+00December Decline: KC Fed Manufacturing Index Falls to -3

The Kansas City Federal Reserve Manufacturing Index witnessed a notable shift in December 2025, as it plunged to -3, contrasting sharply with a robust reading of 18 in the previous month. The December update, released on December 18, underscores a slump in manufacturing activity within the district.

This decline marks a significant downturn from the November report, which highlighted a period of growth and expansion. The KC Fed Manufacturing Index, a key regional economic indicator, captures the health of the manufacturing sector in the Tenth Federal Reserve District, encompassing states such as Kansas, Missouri, and Oklahoma.

The drop to -3 now positions the index in negative territory, suggesting that manufacturing activities have contracted rather than expanded. The latest update reflects challenges facing the sector, which may include supply chain disruptions, decreased demand, or other economic pressures. As manufacturers navigate these issues, the broader implications for the U.S. economy are set to become a focus for policymakers and economic analysts.