---
source: Federal Reserve Bank of Kansas City
url: https://www.kansascityfed.org/surveys/manufacturing-survey/tenth-district-manufacturing-activity-grew-further-in-april/
document_type: html
date_retrieved: 2026-04-23
period: April 2026
parent_publication: Survey of Manufacturers (Manufacturing Survey)
indicators_covered: [Composite Index, Manufacturing Index]
---

# Tenth District Manufacturing Activity Grew Further in April

**Release Date:** April 23, 2026  
**Survey Period:** April 2026 (month-over-month)  
**Authors:** Cortney Cowley and Megan Williams

## Summary

Tenth District manufacturing activity grew further in April, while expectations for future activity rose slightly from last month. Raw materials prices increased sharply this month, while fewer firms reported increasing their finished product prices.

## Composite Index

The **month-over-month composite index** was **10** in April, down from **11** in March and up from **5** in February. The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes.

- Durable manufacturing activity declined, while nondurable manufacturing activity increased further, driven primarily by food manufacturing.
- The month-over-month indexes were all positive except for new orders for exports and employee count.
- Most year-over-year indexes were positive except for backlog of orders, employment indexes, and materials inventory.

**Future Activity (Expectations Index):** The composite index for future activity increased from 16 to 18, as expectations for production and new orders rose further.

## Manufacturing Composite Indexes — Historical Table

| Date       | Vs. a Month Ago | Vs. a Year Ago |
|------------|-----------------|----------------|
| 2025-04-01 | -2              | -8             |
| 2025-05-01 | -3              | -5             |
| 2025-06-01 | -1              | -14            |
| 2025-07-01 | 1               | -5             |
| 2025-08-01 | 1               | -2             |
| 2025-09-01 | 3               | -7             |
| 2025-10-01 | 4               | -6             |
| 2025-11-01 | 7               | -1             |
| 2025-12-01 | 0               | -4             |
| 2026-01-01 | 0               | -4             |
| 2026-02-01 | 5               | 2              |
| 2026-03-01 | 11              | 8              |
| **2026-04-01** | **10**          | **6**          |

*Year-over-year composite index eased from 8 to 6.*

## Special Questions — Energy Costs

This month, contacts were asked about changes in energy costs and ability to pass through these costs:

- **Transportation costs:** 93% of firms reported higher costs in the last two months; 7% experienced no change.
- **Heating (natural gas) costs:** 43% higher, 53% no change, 4% lower.
- **Electricity costs:** 38% higher, 62% no change.
- **Pass-through ability:** Over two-thirds of firms that experienced higher energy costs will pass on 0–20% to customers; 3% will pass on 21–40%; 8% will pass on 41–60%; 4% will pass on 61–80%; 8% will pass on 81–100%; 1% will pass on more than 100%; 6% have had to decrease prices.

## Selected Manufacturer Comments

> "We have seen past-due invoices / late payments / bad debt expense rise in 2026 above normal levels."

> "The uncertainty in the business environment continues, making it difficult to formulate long term plans. Most of our efforts are being put into managing the short-term timeframe."

> "We are considering a blanket price increase mid-year to account for increases in RM and transportation."

> "This month was down compared to last month because last month was an all-time record. This month was more of an average month."

> "Very tough business environment."

> "Our inventory is decreasing, but it is due to supply chain constraints not because we are trying to lower it. We can't get it into the warehouse fast enough."

> "International demand has dropped off rapidly."

> "Our costs are up again due to market instability. We cannot increase them again without losing customers."