FX.co ★ Dallas Fed Manufacturing Index Lowest in Nearly 5 Years

In April 2025, the Dallas Federal Reserve’s general business activity index for Texas manufacturing experienced a significant decline, dropping 19.5 points to -35.8, its lowest point since May 2020, indicative of a deepening deterioration in the sector's conditions. The production index saw a slight decrease of 0.9 points, bringing it to 5.1, whereas the new orders index drastically fell by 19.9 points to -20.0. Additionally, the shipments index declined by 11.6 points, entering negative territory at -5.5, and the capacity utilization index slipped by 1.5 points to -3.8. Sentiment among businesses also declined, with the company outlook index falling by 17.6 points to -28.3, marking a post-pandemic low. Meanwhile, the outlook uncertainty index rose by 10.9 points to 47.1, reflecting growing uncertainty. Labor market indicators suggested a minor decrease in workforce numbers and shorter working weeks, as employment remained relatively stable at -3.9, and the hours-worked index declined to -6.4. Additionally, input cost pressures increased, while wage growth remained mostly unchanged, and pressures on selling prices intensified.