Manufacturing activity in Texas continued to grow in April, though modestly, even as business sentiment deteriorated to a five-year low, the Federal Reserve Bank of Dallas reported on April 28.
The Dallas Fed’s production index—a key gauge of factory output—registered 5.1, remaining in positive territory for a third consecutive month and signaling slight but steady growth. However, the general business activity index plunged to minus 35.8, the weakest reading since May 2020, reflecting deepening anxiety among manufacturers over tariffs and broader economic uncertainty.
“It is a very dynamic time,” a chemical manufacturer wrote in a survey comment. “I agree with the approach and need to bring manufacturing back to the U.S. so that we have the internal capability for national security interests. The ability to forecast and to understand consumer confidence drivers to the basic materials, construction, automotive markets, etc., are the most difficult we have seen since the COVID era.”…