21.05.202615:00:00UTC+00U.S. KC Fed Composite Index Eases to 8 in May, Signaling Slight Cooling in Regional Activity

The Federal Reserve Bank of Kansas City’s Composite Index for the United States edged down to 8 in May 2026, from 10 in April 2026, indicating a modest slowdown in regional economic activity. The latest reading, updated on 21 May 2026, suggests that while growth remains positive, momentum has softened compared with the previous month.

The decline from 10 to 8 points to a slight easing in conditions across the sectors captured by the Kansas City Fed’s survey, which typically includes manufacturing and service-related activity in the region. Although still in expansionary territory, the lower index value may reflect early signs of cooling demand or more cautious business sentiment as the second quarter of 2026 progresses.

With the Composite Index remaining above zero, the data continue to portray an economy that is growing, but at a slower pace than in April. Market participants and policymakers will be watching upcoming releases closely to see whether May’s dip proves temporary or marks the start of a more sustained moderation in regional economic growth.