Federal Reserve Bank of Dallas
10/26/2026 | Press release | Distributed by Public on 10/26/2026 08:39
Texas Manufactoring Outlook Survey
October 26, 2026
Texas manufacturing activity remains solid, though pace of growth moderates
Texas manufacturing output growth eased in October, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell 14 points to 15.8, but remained above its series average, indicating a slower yet still solid pace of expansion.
Other measures of manufacturing activity also pointed to slower growth this month. The capacity utilization index fell 10 points to 13.7, and the shipments index decreased 16 points to 8.4. The new orders index dropped sharply to 9.3 from 30.7.
Perceptions of broader business conditions improved in October. The general business activity index increased to 13.4 from 9.8, and the company outlook index rose seven points to 16.1. The outlook uncertainty index edged down three points to 7.9.
Labor market measures remained positive in October, though employment growth slowed while work hours rose faster. The employment index fell to 11.6 from 15.1. The hours worked index increased five points to 10.1.
Price pressures edged higher while wage pressures eased this month. The finished goods prices index ticked up to 29.9 from 27.6, while the raw materials prices index edged up three points to 55.3, well above its series average of 28.1. The wages and benefits index fell seven points to 20.8.
Expectations are for continued growth in manufacturing activity six months from now. The future production index was little changed at 39.4, while the future general business activity index jumped 17 points to 38.1. Other indexes of future manufacturing activity remained in positive territory.
Next release: Monday, November 30
Data were collected October 13-21, and 64 of the 114 Texas manufacturers surveyed submitted responses. The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state's factory activity. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.
Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase. When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior month. If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior month. An index will be zero when the number of firms reporting an increase is equal to the number of firms reporting a decrease. Data have been seasonally adjusted as necessary.
Federal Reserve Bank of Dallas published this content on October 26, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 26, 2026 at 14:39 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]