Tenth District Manufacturing Activity Increased Steadily in October
Kansas City Fed
Last updated: October 23, 2026
Tenth District manufacturing experienced steady growth in October, with future activity expectations reaching their highest point since July 2022. The manufacturing sector saw an increase in prices paid for raw materials, while the growth in prices for finished goods slowed.
- Manufacturing activity in the Tenth District showed consistent expansion throughout October. New orders increased, as did production levels, indicating a healthy upturn. Shipments also saw a rise, suggesting improved logistics and distribution. The number of employees in the manufacturing sector edged up, signaling cautious optimism in hiring.
- Order backlogs declined slightly, implying that manufacturers are making progress in fulfilling existing orders. Raw material inventories remained stable, while finished goods inventories saw a modest increase.
- The pace of price increases for raw materials accelerated in October. Conversely, the growth rate of prices received for finished goods eased, suggesting that manufacturers may be absorbing some of the increased input costs or facing competitive pressures.
- Looking ahead, manufacturers expressed a more optimistic outlook regarding future business conditions. Expectations for production and new orders in the coming months improved, reflecting a positive sentiment about the near-term economic environment for the sector.
