
Texas Manufacturing Activity Improves Sharply in January

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The Dallas Fed's general business activity index for Texas manufacturing rose 10 points to -1.2 in January 2026, indicating a recovery from December's contraction. The outlook index improved to 2.9, reflecting better business conditions. Key indicators showed strong manufacturing activity: production index at 11.2, new orders up 18 points to 11.8, and capacity utilization increased to 7.1. Employment indicators suggested net hiring, while wage growth slowed slightly. Overall, the data points to a solid expansion in Texas manufacturing.
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