April 27, 2026
Texas manufacturing expansion strengthens despite flat employment
Texas manufacturing output growth accelerated in April, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, jumped 12 points to 19.0, a reading suggestive of an above-average pace of output expansion.
Other measures of manufacturing activity also showed signs of faster growth this month. The capacity utilization index moved up 13 points to 19.8, the new orders index increased four points to 9.9 and the shipments index rose 13 points to 15.0.
Perceptions of broader business conditions were mixed in April. The general business activity index fell two points to -2.3. However, the company outlook index rebounded into positive territory, rising seven points to 3.0. The outlook uncertainty index fell eight points to 17.9.
Employment continued to be flat, but workweeks were slightly longer in April. The employment index was unchanged at -0.9, with the near-zero reading indicating no change in payrolls from March. The hours worked index moved up to 4.0 from 0.9.
Price pressures increased while wage pressures were little changed this month. The finished goods prices index jumped nine points to 27.6, its highest level since July 2022, while the raw materials prices index increased to 37.0 from 32.7. The wages and benefits index was relatively unchanged at 24.8.
Expectations are for increased manufacturing activity six months from now. The future production index held steady at 34.6, and the future general business activity index rose four points to 14.1. Other indexes of future manufacturing activity remained in positive territory and increased.
Next release: Tuesday, May 26
Data were collected April 14–22, and 67 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.