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.
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