Texas Manufacturing Activity Shows Slight Improvement in February

Factories in the Dallas District experienced a slight improvement in activity during February, according to the latest Texas Manufacturing Outlook Survey from the Federal Reserve Bank of Dallas.

Key Findings

The general manufacturing index rose to +0.2 points in February, an increase from -1.2 points in the previous month. A positive value indicates expansion, while a negative value suggests contraction. This indicates a move towards growth in the sector.

The production index, a key measure of manufacturing conditions, remained relatively stable at 12.5, signaling an above-average pace of expansion. The index for future production rose five points to 11.8.

The index for new orders held steady at 11.1 and the shipments index decreased slightly to 9.9 from 12.0.

About the Texas Manufacturing Outlook Survey

The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to assess the state’s factory activity. Firms are surveyed on changes in output, employment, orders, prices, and other indicators. Responses are compiled into indexes, where positive values generally indicate growth and negative values indicate contraction. The survey provides a timely assessment of the economic health of the manufacturing sector in Texas, which is the second-largest U.S. State by population, land area, and GDP .

Broader Economic Context

According to the Federal Reserve, manufacturing outlooks remain weak, and uncertainty is increasing. Concerns among manufacturers include a potential recession, rising input costs, and geopolitical uncertainty .

The next release of the Texas Manufacturing Outlook Survey is scheduled for Monday, March 30, 2026 .