The Dallas Federal Reserve’s Texas Manufacturing Outlook Survey for May landed at 0.4, a modest but meaningful swing from April’s -2.3 reading. In plain terms: Texas factories went from shrinking (barely) to growing (barely).
The May report, published on May 26 by the Federal Reserve Bank of Dallas, paints a picture of a manufacturing sector caught between cautious optimism and stubborn cost pressures.
The numbers behind the rebound
The future general business activity index came in at 14.3, suggesting manufacturers expect conditions to improve in the months ahead.
Employment held remarkably steady. The employment index sat at 0.2, essentially unchanged. Hours worked, however, slipped to 1.8 from 4 in April.
