The Federal Reserve Bank of Dallas reported Monday its general business activity index for manufacturing in Texas rose to 19.8 in October from an unrevised 13.6 in September, pointing to expansion in Texas factory activity for the third straight month. This was the highest reading since October 2018 as well.

According to the report, the production index, a key measure of state manufacturing conditions, came in at 25.5 in October, up 3.2 points from September, indicating a slight acceleration in output growth. The new orders index rose 5.2 points to 19.9, and the growth rate of orders index increased 1.1 points to 14.3. The shipments index edged up 0.4 points to 21.9, while the capacity utilization index climbed 5.5 points to 23.0. Meanwhile, the employment index fell 5.8 points to 8.7, suggesting less robust hiring.