Federal Reserve Bank of Dallas
07/27/2026 | Press release | Distributed by Public on 07/27/2026 08:51
Texas Manufactoring Outlook Survey
July 27, 2026
Growth continues in Texas manufacturing sector as outlooks improve
Texas manufacturing output growth accelerated in July, 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 10.1.
Other measures of manufacturing activity also showed solid growth. The capacity utilization index and the shipments index were relatively unchanged at 5.9 and 8.8, respectively. The new orders index increased to 6.4 from 2.3.
Perceptions of broader business conditions improved in July. While the general business activity index was little changed at 1.3, the company outlook index jumped 11 points to 13.4, signaling a notable improvement in outlooks. The outlook uncertainty index fell five points to 6.4.
Employment growth and work hours were relatively stable in July. The employment index dipped two points to 12.2, remaining above its series average. The hours worked index edged down to 4.3 from 5.9.
Price and wage pressures remained markedly elevated, though the indexes showed mixed movements in July. The finished goods prices index fell three points to 25.6. The raw materials prices index was relatively unchanged at 41.3. The wages and benefits index ticked up five points to 30.8.
Expectations are for increased manufacturing activity six months from now. The future production index and the future general business activity index remained unchanged at 34.6 and 26.5, respectively. Other indexes of future manufacturing activity remained in positive territory.
Next release: Monday, August 31
Data were collected July 14-22, and 64 of the 110 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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