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United States · Inflation & data · Source: Federal Reserve Bank of Dallas
Dallas Fed: Texas factory output growth eases in October, production index at 15.8
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Editor: Hedal Kolanyi / AI-assisted
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Summary: Texas manufacturers kept expanding in October, but more slowly than in September, according to the Federal Reserve Bank of Dallas. Output, orders and shipments cooled, while raw-material costs rose further and firms became more upbeat about the next six months.
What happened
The Dallas Fed released its Texas Manufacturing Outlook Survey on 26 October 2026. Each index is the share of firms reporting an increase minus the share reporting a decrease, so a reading above zero signals growth.
- Production, which the Dallas Fed calls a key gauge of state factory conditions, fell 13.7 points to 15.8 from 29.5. That is still above its long-run average of 9.7.
- New orders dropped to 9.3 from 30.7. Shipments fell to 8.4 from 24.8, and capacity utilization to 13.7 from 23.9.
- Employment eased to 11.6 from 15.1, while hours worked rose to 10.1 from 5.6.
- Prices: the raw materials prices index rose to 55.3 from 52.2, far above its average of 28.1. Finished goods prices rose to 29.9 from 27.6. The wages and benefits index fell to 20.8 from 27.4.
- Outlook: the general business activity index rose to 13.4 from 9.8. Looking six months ahead, the future general business activity index jumped to 38.1 from 20.8, and future production held near 39.4.
Global Trade Review reported the same production, new orders, shipments, capacity, employment and hours figures. It said the 13.4 general business activity reading compared with a consensus forecast of 7.0, without saying who compiled that forecast. The consensus is not a Dallas Fed number.
Background
The survey is a monthly snapshot of factory activity in Texas. The Dallas Fed said data for this edition were collected 13–21 October, and 64 of the 114 manufacturers surveyed responded. The bank summed up the month as showing "a slower yet still solid pace of expansion." This edition also carried special questions on credit conditions.
The survey covers one US state and a relatively small sample. It is one regional indicator, not a measure of the whole US economy.
Why it matters for markets and crypto
Regional Fed surveys are among the first monthly signals on US factory demand and cost pressures. Analysts watch the price measures in particular when they discuss inflation. These data relate to the wider economy. The Dallas Fed survey says nothing about crypto-assets, and this article draws no link to them.
What to watch next
- 30 November 2026: the Dallas Fed's next Texas Manufacturing Outlook Survey release, according to the bank.
- Whether new orders keep slowing, and whether raw-material cost pressure persists.
Sources
- Federal Reserve Bank of Dallas, Texas Manufacturing Outlook Survey, 26 October 2026
- Federal Reserve Bank of Dallas, Texas Manufacturing Outlook Survey results table, 26 October 2026
- Global Trade Review, "Dallas Fed manufacturing index unexpectedly rises in October", 26 October 2026
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