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Manufacturing activity fell modestly in the Tenth District in April, with the month-over-month composite index down two points to -4. Meanwhile, expectations for future activity declined slightly but remained positive. The Tenth Federal Reserve District encompasses the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. The month-over-month decrease in activity continued to be due primarily to declines in nondurable manufacturing, specifically food and print manufacturing. Most month-over-month indexes were negative, apart from prices, supplier delivery times and inventories for finished goods. Written responses highlight significant price pressure from tariffs, with respondents expecting potential layoffs and price increases for consumers.

Production fell six points to -5, while new orders inched up from -12 to -11. Employment declined at a faster rate in April, falling from -4 to -11, while the average employee workweek turned negative, decreasing from 6 to -6. The backlog of orders worsened from -6 to -20. The year-over-year composite index for factory activity dipped from -7 to -8. Prices received increased both month-over-month and year-over-year in April, while prices for raw materials rose year-over-year in April but were unchanged month-over-month.

In April, survey respondents were asked about business uncertainty and demand expectations. An overwhelming majority of respondents, about 86%, said there was more uncertainty than at the beginning of the year, with nearly 45% saying there was much more uncertainty. Just 11% reported no change, while roughly 2% said there was less uncertainty. When asked about demand expectations, 18% of firms said that demand was significantly lower, and 35% said that expectations were only slightly lower. Meanwhile, 23% said demand was unchanged, and 23% reported slightly higher demand.