Business and manufacturing activity in Oklahoma and the other states that make up the Tenth District of the Federal Reserve Bank of Kansas City is on the upswing, according to the May Manufacturing Survey released by the Bank.
Cortney Cowley, assistance vice president and Oklahoma City branch executive said expectations for future activity also remained positive.
“District manufacturing activity rose further in May, and firms anticipate continued growth in the
months ahead,” said Cowley. “Firms continued to cite elevated cost pressures. Nearly two-thirds
reported their input prices were changing more frequently than in 2025.”
The bank reported that nondurable manufacturing activity continued to grow and was driven primarily by paper and printing manufacturing. It found that most month-over-month indexes were positive except for new orders for exports, employee count, and raw material inventories. The year-over-year composite index increased moderately from 6 to 17, as all indexes were positive except for new orders for exports, and most showed increases from last month. Expectations for future activity continued to increase slightly with the composite index increasing from 18 to 19, as expectations for employment increased.
Special Questions
This month, contacts were asked special questions about changes in input and output prices and hiring and capital investment plan changes. A quarter of firms reported their input prices are changing at about the same rate as last year, 65% reported their input prices are changing more often, and 10% reported their input prices are changing less often. Over half (53%) of firms reported their output prices are changing at about the same rate as 2025, 33% reported output prices are changing more often, and 14% reported their output prices are changing less often (Chart 2). Firms were also asked about any changes in their hiring and capital investment plans since the start of the year. Over half (58%) of firms have not changed their hiring plans since the start of the year, 22% expect to hire more workers, and 20% expect to hire less workers. Almost a quarter (23%) of firms expect to decrease capital investments, 15% expect to increase capital investments, and 62% of firms have not changed their capital investment plans (Chart 3).
Selected Manufacturing Comments
“Demand is slowly increasing with expectations for this slow pace of acceleration to continue through the balance of this year.”
“As price pressures increase from customers and material prices continue to increase and employees continue to demand better wages and benefits, manufacturers are getting squeezed to operate razor thin margins leaving very little room for reinvestment in the company.”
“Fuel costs are driving delivered prices up and increasing raw material prices.”
“Fuel charges are having a detrimental effect on our business.”
“Sales have come to a stop.”
“Qualified applicants for open positions continue to be in shortage. We have significant open positions.”
“Extremely worried about input costs.”
“It has been hard to find employees; it is starting to effect business.”
The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District,
encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and
Wyoming; and the northern half of New Mexico. As part of the nation’s central bank, the Bank
participates in setting national monetary policy, supervising and regulating numerous
commercial banks and bank holding companies, and providing financial services to depository
institutions.
