The Kansas City Fed’s Manufacturing Production Index surged to 10 in February 2026, rebounding from -2 in January, signaling renewed output growth. Future activity expectations edged higher, with employment outlooks also improving. Input and finished goods prices cooled moderately, suggesting easing inflationary pressure in the sector. Meanwhile, the composite index which is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes, rose to 5 from 0. Nondurable manufacturing activity declined further, while durable manufacturing activity edged higher, driven by primary metal and electrical equipment manufacturing.