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The Dallas Fed’s general business activity index for Texas manufacturing edged up to 0.2 in February 2026 from -1.2 in January, indicating broadly stable conditions. The company outlook index was unchanged at 3.1, while the uncertainty index increased to 6.5 but remained below its historical average. Employment continued to expand, with the employment index steady at 7.5, and workweeks lengthened as the hours worked index rose to 6.1 from 0.7.
Pricing dynamics were mixed. The finished goods prices index held at 17.9, suggesting ongoing selling-price pressures, while the raw materials prices index eased to 31.7 from 36.7, pointing to slower input cost growth. Wage pressures intensified: the wages and benefits index jumped to 31.9 from 17.4, signaling a marked acceleration in labor costs.
Forward-looking measures were generally positive. The future production index climbed five points to 34.3, underscoring solid output expectations, while the future general business activity index edged down to 12.7, indicating continued, albeit slightly less robust, optimism about overall conditions.
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