FX.co ★ US Dallas Fed Manufacturing Activity Rebounds in May

The Dallas Fed’s general business activity index for Texas manufacturing rose to 0.4 in May 2026, rebounding from -2.3 in April. Assessments of overall business conditions were largely steady: the company outlook index edged down to 0.3 from 3.0, indicating essentially unchanged sentiment, while the outlook uncertainty index ticked up to 19.2 but remained above its series average of 16.9.

Labour market conditions were broadly flat. The employment index was unchanged at 0.2, and the hours worked index declined to 1.8 from 4.0. Wage pressures were stable, with the wages and benefits index little changed at 18.9.

Input cost pressures strengthened: the raw materials prices index climbed to 42.7, its highest reading in eight months, while the finished goods prices index eased to 18.9.

Looking ahead, the future general business activity index registered 14.3, indicating that firms expect manufacturing activity to increase in the coming months.