A new report from the Federal Reserve Bank of Kansas City says its April Manufacturing survey of the district that includes Oklahoma showed a modest decline.
The Tenth District includes Oklahoma, western third of Missouri; all of Kansas, Colorado, Nebraska, and Wyoming; and the northern half of New Mexico.
“Regional factory activity continued to decrease in April and price levels rose further,” said Megan Willilams, associate ecconomist and survey manager. “However, expectations for future activity still remained slightly positive.”
The survey found the composite index, an average of the production, new orders, employment, supplier delivery time and raw materials inventory indexes, dropped in April. The report said the nondurable manufacturing sector continued to drive the declines, particularly food and print manufacturing.
This month contacts were asked special questions about business uncertainty and demand expectations. Almost half of firms reported much more uncertainty about economic conditions compared to the beginning of this year. Approximately 42% of firms reported that there is more uncertainty, with 11% of firms reporting no change. Around 2% of firms shared that they are less uncertain, with 1% reporting there is much less uncertainty.
Firms were also asked how their product demand expectations changed for 2025 compared to a few months ago. 18% of firms reported that their product demand expectations were significantly lower than they were a few months ago, while 35% of firms stated that their expectations were slightly lower. Another 23% of firms reported their expectations for demand were unchanged compared to a few months ago, with approximately 23% anticipating slightly higher demand and only 1% expecting a significant increase.
Below are selected comments from some of those who responded to the survey.
“We have seen the domestic steel mills increase prices in anticipation of tariffs on imported steel. Increases are greater than 20% so far.”
“We have furloughed employees and reduced production hours to help minimize loss. Significant effort being made to gain business and increase revenue.”
“We will reduce workforce as tariffs take hold. We will also increase prices and pass through to the consumer. It will be a fight to remain open under the present terms and conditions of the current administration.”
“Many suppliers are raising prices and announcing increases in the next 2 months. Proprietary parts and cost for maintenance parts continues to be where we see the highest increases.”
“We have found suppliers are taking advantage of the tariffs to get a higher price increase. This has caused us to move business to other suppliers.”
