US Dallas Fed Manufacturing Activity Contracts in April

The Dallas FED's general business activity index for Texas manufacturing fell to -2.3 in April 2026 from -0.2 in March, marking its lowest level so far this year. The company outlook index rebounded into positive territory at 3, while the outlook uncertainty index declined to 17.9 after nearing a one-year high in March. Labor market indicators were largely stable. Employment remained flat, but firms reported slightly longer workweeks, with the hours worked index rising to 4 from 0.9. Wage pressures showed little movement, as both the wages and benefits index were unchanged. Price pressures intensified, the finished goods price index surged to 27.6, its highest level since July 2022, while the raw materials price index climbed 4.3 points to 37. Looking ahead, expectations of general business activity rose 4 points to 14.1, as firms expect an increase in manufacturing activity over the next six months.

The Dallas Fed's general business activity index for Texas manufacturing fell to -0.2 in March 2026 from 0.2 in February, indicating no change in activity. However, the company outlook index dropped nearly seven points to -3.5, moving into negative territory. The outlook uncertainty index surged 20 points to 26.0, its highest reading since April 2025. Employment growth stalled and workweeks were flat in March. The employment index came in near zero, with 15 percent of firms reporting net hiring and 16 percent reporting net layoffs. The hours worked index fell to 0.9 from 6.1. Price pressures were little changed while wage growth slowed. The finished goods prices index and raw materials prices index held relatively steady at 18.4 and 32.7. The wages and benefits index fell to 25.2 from 31.9. Looking ahead, manufacturers expect increased activity in six months. The future production index held steady at 35.7 and the future general business activity index fell two points to 10.6.

The Dallas Fed’s general business activity index for Texas manufacturing rose to 0.2 in February 2026 from -1.2 in the prior month, signaling near-stable conditions. Company outlook held steady at 3.1, while uncertainty rose to 6.5 but stayed below average. Employment growth continued, with the index unchanged at 7.5, workweeks lengthened as hours worked jumped to 6.1 from 0.7. Pricing pressures were mixed: finished goods prices held at 17.9, while raw materials costs eased to 31.7 from 36.7. Wage growth surged, the wages and benefits index climbed to 31.9 from 17.4. Looking ahead, manufacturers are optimistic: future production rose five points to 34.3, and future business activity dipped to 12.7.