The Kansas City Fed’s Manufacturing Production Index was 0 in August 2025, improving from -3 in July and signaling a stabilization in factory activity. The reading reflected mostly unchanged overall manufacturing: nondurable manufacturing activity declined slightly, driven by printing, paper, and chemical manufacturing, while durable goods were largely flat. Key indicators shifted from declines earlier in the summer: production, shipments, and new orders all rose modestly month-over-month. Backlogs remained weak and showed a marked drop, employment increased modestly, and inventories declined. Production, backlogs, and the average employee workweek improved slightly, while employment was down on a year-ago basis. Price measures remained elevated, and capital spending intentions were broadly positive. Looking ahead, the future composite index rose from 8 to 11, reflecting cautiously positive expectations for production, orders, and shipments.