Kansas City Services Growth Slows Amid Rising Costs

The survey, which tracks businesses from Colorado to western Missouri, highlights a tightening environment for providers. With the exception of credit conditions—which slipped to negative 2—all month-over-month indicators remain positive. However, the momentum behind consumer and business services has clearly ebbed compared to the previous month.

Inflationary pressures continue to weigh on operations. One-quarter of surveyed firms reported passing more than 60% of their rising costs directly to customers, signaling a persistent effort to protect margins despite the cooling demand. The Tenth District includes diverse sectors such as wholesale trade, real estate, and restaurants, all of which are navigating this shift in regional economic activity.