Texas factories show signs of life after late-2025 slowdown
A worker measures metal components inside a manufacturing facility. Texas factory activity showed signs of strengthening in January, according to the latest Texas Manufacturing Outlook Survey from the Federal Reserve Bank of Dallas. Courtesy of | Unsplash | Spencer Davis

Texas factories started the year on a stronger footing, with more manufacturers reporting higher production and new orders in January, according to the latest Texas Manufacturing Outlook Survey from the Federal Reserve Bank of Dallas.

After a weak finish to 2025, the survey shows that factory output, orders and shipments are moving up again, signaling that manufacturing activity across the state is gaining momentum.

Hiring also showed improvement. More companies reported adding workers in January after job growth slowed late last year. Work hours were largely unchanged.

Manufacturers said costs for materials remain high, and many continue to raise prices, though wage increases have slowed somewhat.

Looking ahead, most factory executives expect business activity to continue improving over the next six months, even as uncertainty about the economy remains.

The Texas Manufacturing Outlook Survey, which was released Monday, is based on responses from about 100 manufacturing executives statewide and is closely watched as an early indicator of industrial conditions in Texas.


Daily Business Update

Get the latest business news delivered to your inbox every morning for free.

    Try 30 Days Free!

    Get full access to award-winning journalism covering business, real estate, health care, economic trends, and the people shaping the Rio Grande Valley.

    30 Days Free!

    $9.95/month

    Limited time offer

    Subscription renews after your 30 day free trial at $9.95/mo.

    Included Benefits


    • Unlimited access to all articles
    • Daily business news and analysis
    • Subscriber-only content and features
    Get Full Access

    McAllen airport lands $7M federal grant for terminal expansion

    May 21, 2026 • 2 min read

    Airport leaders say rising passenger volumes and future air service opportunities are driving the need for expanded infrastructure at McAllen... Read more »

    UTRGV-trained physicians are reshaping the Valley’s strained healthcare system

    November 5, 2025 • 5 min read

    Since 2016, the UTRGV School of Medicine has produced 449 doctors — and more than 130 chose to stay and... Read more »