FX.co ★ Texas Manufacturing Sector Weakens Further in March

The general business activity index from the Dallas Fed for Texas manufacturing experienced an 8-point decline, landing at -16.3 in March 2025. This marks the lowest level since July 2024 and indicates further deterioration in business conditions within the sector. The results from other manufacturing activity measures were mixed. Notably, the production index saw a significant increase of 15 points, reaching 6.0. The new orders index showed a slight improvement, moving up by three points to zero. The shipments index maintained its positive position, steady at 6.1, while the capacity utilization index, though still in negative territory, climbed six points to -2.3. However, sentiment among firms declined further. The company outlook index fell to -10.7, the lowest it has been in eight months, and the uncertainty surrounding the outlook soared by 7 points to 36.2, the highest level since the fall of 2022. Labor market indicators suggested a reduction in headcounts accompanied by slightly shorter workweeks during March. Pressures on input costs increased, while wage growth and selling price pressures remained stable.