25.08.202514:35:30UTC+00Texas Manufacturing Sector Shrinks Slightly

In August 2025, the Dallas Federal Reserve reported a decrease in the general business activity index for Texas manufacturing, declining to -1.8 from July's 0.9, suggesting a modest contraction. The production index registered at 15.3, down from 21.3 in July, though it remained significantly above the norm. Notably, the new orders index entered positive territory for the first time since January, climbing to 5.8 from -3.6. Meanwhile, the capacity utilization index decreased slightly to 13.7 from 17.3 but remained elevated. Additionally, the shipments index increased by 12 points to reach 14.2, marking its highest level in over three years. The employment index was stable at 8.8, with 20% of companies reporting net hiring and 11% experiencing net layoffs. The company outlook index maintained a slightly positive stance at 3.3, while the outlook uncertainty index increased by seven points to 18.3. Looking ahead, expectations for manufacturing activity over the next six months showed improvement. In terms of pricing, the raw materials prices index rose to 43.7, substantially higher than its average of 27.4, whereas the finished goods prices index increased by four points to 15.1.