Texas factory activity picked up notably in July, according to business executives responding to the Texas Manufacturing Outlook Survey.

The production index, a key measure of state manufacturing conditions, jumped 20 points to 21.3, its highest reading in more than three years and its biggest MoM jump since March 2021...

New Orders, Shipments, and Capacity Utilization all saw improvements month over month with labor market measures also suggesting an improvement in employment and work hours.

Current inflation views declined (but notably pries received are well below prices paid suggesting margin pain)...

But looking ahead, inflation expectations are rising...

Tariffs were, obviously, an often mentioned topic:

But for some , there was a renewed optimism as uncertainty declines:

We give the final word to a 'Computer and electronic product manufacturing' business owner who said:&nbsp;

"Please lower interest rates now, like other countries are doing."

Don't hold your breath for anything this week!

"Tariffs. Tariffs. Tariffs. Did I mention Tariffs? "
{ai:summary}Texas factory activity saw a significant increase in July, with the production index rising to its highest level in over three years. Improvements were noted in new orders, shipments, and capacity utilization, alongside a positive outlook on employment and work hours. However, concerns over tariffs persist, with business leaders highlighting their impact on operations and pricing. Despite these challenges, some optimism remains as orders increase and capital spending in various sectors rises. A call for lower interest rates was also voiced by a manufacturing executive. #economy

Dallas Fed Manufacturing Survey Soars As Respondents Demand "Lower Interest Rates Now"

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