The Dallas Fed General Business Activity Index fell to -0.2 in March 2026, down from 0.2 in February. This near-zero reading indicates that broader business conditions in Texas manufacturing were essentially unchanged for the month.
Key Manufacturing Indicators (March 2026)
- Production Index: Dropped to 6.8 from 12.5, signaling a much slower pace of output expansion.
- New Orders Index: Fell to 6.1 from 11.1, reflecting softening demand.
- Capacity Utilization: Declined five points to 7.2.
- Shipments Index: Dropped significantly to 1.8 from 9.9.
- Employment Index: Stalled at near zero, with hiring and layoffs roughly balancing out.
Business Sentiment & Uncertainty
- Outlook Uncertainty Index: Surged 20 points to 26.0, its highest level since April 2025, as firms grapple with geopolitical instability and fluctuating energy costs.
- Company Outlook Index: Retreated into negative territory at -3.5, down from 3.1 in February.
- Future Outlook: Despite current headwinds, the Future Production Index remained steady at 35.7, suggesting manufacturers still expect growth six months from now.
Cost Pressures
- Raw Materials Prices: Remained elevated but steady at 32.7.
- Wages and Benefits: Growth eased, with the index falling to 25.2 from 31.9.
Would you like to see a comparison with other regional indices like the Kansas City Fed or Richmond Fed which were also released recently?
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