Texas factory activity climbed in October as perceptions of broader business conditions improved, the Federal Reserve Bank of Dallas said on Monday, October 26. The Texas Manufacturing Outlook Survey's index for general business activity was 13.4 in October, up from 9.8 in September.

Source: Morningstar / Dow Jones Newswires — Texas Factory Business Activity Climbed in October

The reading beat expectations. Seeking Alpha reported the index rose to 13.4 against a 7.0 consensus forecast, and a Reuters table published via TradingView confirmed the same October and September figures from the Dallas Fed survey.

Source: Reuters via TradingView — Table: Dallas Fed Texas October manufacturing activity index 13.4

13.4general business activity index, October
9.8index in September
15.8production index, down 14 points
9.3new orders index, down from 30.7

The details were mixed. The production index, a key measure of state manufacturing conditions, fell 14 points to 15.8 but stayed above its series average, suggesting slower but still solid expansion. The company outlook index rose seven points to 16.1, while the outlook uncertainty index edged down three points to 7.9.

New orders dropped sharply to 9.3 from 30.7. Employment growth slowed, while work hours picked up. Prices remained a pressure point: the finished goods prices index ticked up to 29.9 from 27.6, and the raw materials prices index edged up to 55.3. For Texas manufacturers — and for trucking and logistics firms that move their goods — the survey points to busier factories in October, but weaker incoming orders and higher input costs heading into November.