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Manufacturing activity slowed in the Tenth District in December, with the month-over-month composite index declining 7 points to 1 from November. On the other hand, expectations for future activity rose 4 points to 13. 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 easing in activity was due to weakness in both durable and nondurable manufacturing. New orders stayed the same from November, but production fell. Meanwhile, shipments were flat after rising the prior month, and new orders for exports decreased at a faster pace than in November.

The production index turned negative, falling from 18 to -3, while the new orders index moved up from -2 to 0. The new orders for exports index remained negative and weakened from -3 to -4 over the month. The employment index declined from 11 to -4, contracting for the first time since July. The backlog of orders improved but remained negative, moving from -4 to -2. Both the pace of growth for prices received and paid grew month-over-month, with raw materials prices increasing from 36 to 40 and prices received climbing 9 points to 22. Furthermore, both prices received and paid rose at a faster pace year-over-year, increasing 8 points and 4 points, respectively.

In December, survey respondents were asked about employee turnover, productivity and capital expenditures. Approximately 24% of firms reported decreased employee turnover over the past year, while 15% cited an increase and 61% revealed no change. About one-third of firms reported increased productivity, 15% experienced a decrease and 51% saw no change. In 2026, 37% of respondents expect capital expenditures to be higher, 29% anticipate no change and 34% plan on lower capital expenditures.