Federal Reserve Bank of Dallas
08/31/2026 | Press release | Distributed by Public on 08/31/2026 08:51
Texas Manufactoring Outlook Survey
August 31, 2026
Texas manufacturing activity accelerates as outlooks improve further
Texas manufacturing output growth accelerated in August, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, increased six points to 16.1.
Other measures of manufacturing activity also pointed to faster growth this month. The new orders index jumped 16 points to 22.0. The capacity utilization index increased to 12.8 from 5.9, and the shipments index increased five points to 14.1.
Perceptions of broader business conditions improved in August. The general business activity index increased to 11.6 from 1.3, and the company outlook index improved further to 19.2 from 13.4. The outlook uncertainty index ticked up two points to 8.7.
Employment growth slowed slightly and work hours were relatively stable in August. The employment index dipped four points to 8.0. The hours worked index edged up to 5.9 from 4.3.
Price pressures were relatively stable but remained markedly elevated while wage pressures eased in August. The finished goods prices index fell three points to 22.7, while the raw materials prices index increased three points to 44.1. The wages and benefits index fell 10 points to 21.1.
Expectations are for increased manufacturing activity six months from now. The future production index increased six points to 40.9, while the future general business activity index increased 11 points to 37.2. Other indexes of future manufacturing activity remained in positive territory.
Next release: Monday, September 28
Data were collected August 18-26, and 69 of the 112 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.
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