Texas factory output continued expanding in October at a slower pace, even as manufacturers’ assessments of broader business conditions improved, the Federal Reserve Bank of Dallas reported Monday, October 26.
The production index fell to 15.8 from 29.5 in September. New orders slowed more sharply, with that index dropping to 9.3 from 30.7. Shipments declined to 8.4 from 24.8.
Those positive readings indicate that more respondents reported increases than decreases. The lower index values signal slower growth, rather than a contraction in the measures themselves.
Business sentiment moved the other way. The general business activity index rose to 13.4 from 9.8, and the company outlook index increased to 16.1 from 8.7.
Employment growth slowed, with the employment index at 11.6 versus 15.1. Raw-material price pressures increased: that index reached 55.3, compared with 52.2 in September. Finished-goods prices also rose faster, while wage pressures eased.
The survey collected responses October 13–21 from 64 of 114 manufacturers contacted. It measures executives’ reported changes at Texas facilities and their expectations, rather than providing a national manufacturing output total.
Sources: Federal Reserve Bank of Dallas — October Texas Manufacturing Outlook Survey, released October 26, 2026: https://www.dallasfed.org/research/surveys/tmos/2026/2610