The Kansas City Fed’s manufacturing production index rose to 20 in September 2026 from 17, its highest reading since April 2022, as durable and nondurable activity strengthened. Plastics and rubber products and furniture-related products led the increase. Shipments rose to 21 from 17, while new orders climbed to 24 from 16, both reaching multi-month highs. Employment was unchanged for a second straight month, while raw-material price pressures intensified. Compared with a year earlier, the production index eased slightly to 19, shipments increased to 23 from 13, new orders slipped to 22 from 23, and employment fell to -3 from 5. The six-month outlook remained expansionary, though its index declined to 9 from 20. The Kansas City Fed composite index also rose to 14 from 10, above the 8.5 forecast, as the U.S. Treasury announced plans to purchase up to $6 billion in long-term debt. Market pricing has treated the stronger regional data as supportive of potential Federal Reserve rate hikes in 2026, with future decisions still dependent on broader economic conditions, inflation and employment data.