The Dallas Fed’s general business activity index for Texas manufacturing rose four points to -5.0 in October 2025, remaining in negative territory. The production index was unchanged at 5.2, signaling below-average output growth for the second straight month. Outlooks were steady, with the company outlook index nearly flat at -0.3, though uncertainty climbed eight points to 22.2. The new orders index stayed near -1.7, while capacity utilization fell to -1.1 from 3.9. The shipments index was steady at 5.8. Employment conditions improved slightly, with the employment index up to 2.0, as 18% of firms reported hiring and 16% layoffs. Hours worked dropped to -5.5. Price and wage pressures eased: raw material prices fell to 33.4, finished goods prices to 7.7, and the wages and benefits index to 14.2. Six-month expectations remained positive but softer, with future production down to 21.0 and general activity to 7.0.