The Dallas Fed’s general business activity index for Texas manufacturing slipped to 9.8 in September 2026 from 11.6 in August, indicating continued, but slightly slower, expansion in the sector. Assessments of broader business conditions remained on an improving trend, though the progress was uneven.
The company outlook index advanced at a much more modest pace, dropping to 8.7 from 19.2, while the outlook uncertainty index increased three points to 11.3, signaling a rise in perceived risks. Employment growth strengthened: the employment index climbed seven points to 15.1 from 8.0, and the hours worked index held largely steady at 5.6.
Price and wage pressures intensified across the board. The finished goods prices index rose five points to 27.6, and the raw materials prices index jumped eight points to 52.2, far above its long-run series average of 28.0. The wages and benefits index also moved higher, increasing six points to 27.4.
Forward-looking indicators remained firmly positive. The future production index was little changed at a robust 40.3, although optimism about broader conditions eased somewhat, with the future general business activity index declining to 20.8 from 37.2.
