News

In September, Texas factory activity declined modestly, and most indicators of manufacturing fell for the month. The production index turned negative to -3.2, signaling a slight decrease in output from August. The new orders index slipped slightly to -5.2, and the capacity utilization index dropped further to -7.0. After rebounding in August, the shipments index fell into negative territory again, declining nearly eight points to -7.0.

Overall business conditions remained negative, with the general business activity index holding relatively steady at -9.0 and the company outlook index improving to -6.4. The outlook uncertainty index, which has been volatile lately, surged nearly 10 points to 17.3 after a significant decrease in the previous month.

Labor market indicators pointed to some employment growth but slightly shorter workweeks in September. The employment index moved up four points, while the hours worked index held steady at -2.5. About 20% of firms reported hiring, while 17% noted layoffs. Moderate upward pressure on prices and wages persisted. The wages and benefits index ticked down to 18.5, roughly aligned with historical averages. The raw materials prices index fell significantly to 18.2, while the finished goods prices index remained nearly unchanged at 8.4.

The outlook for future manufacturing activity remained optimistic. The future production index rose to 35.2, while the future general business activity index was generally unchanged at 11.4.