The Kansas City Federal Reserve's manufacturing composite index unexpectedly fell to 9 in July from 11 in June, missing the consensus estimate of 13. All month-over-month indexes were positive except for new orders for exports at minus 1, while inventories and employee workweek indexes rose from the prior month. Year-over-year, the composite index eased from 15 to 14. Growth slowed in nondurable manufacturing, driven by declines in food manufacturing, while stronger growth in durable manufacturing was led by electrical equipment. Expectations for future activity remained expansionary, with the future composite index reaching 20, its highest since July 2022.