The Federal Reserve Bank of Dallas reported its general business activity index for manufacturing in Texas rose to 8.0 in August from an unrevised -3.0 in July, pointing to expansion in Texas factory activity after five months of contraction. This was the highest reading since February 2019 as well.

According to the report, the production index, a key measure of state manufacturing conditions, came in at 13.1 in August, down slightly from July but still indicative of moderate growth. Meanwhile, the new orders index went up three points to 9.8, and the growth rate of orders index surged more than 10 points to 11.8. The shipments index increased from 17.3 to 23.3, while the capacity utilization index inched down but remained positive at 10.9. The employment index climbed from 3.1 to 10.6, suggesting more robust hiring. The company outlook index registered a third consecutive positive reading, jumping 11 points to 16.6, its highest reading in nearly two years. On the price front, the raw materials prices index climbed 10 points to 19.4, and the wages and benefits index rose six points to 15.2. The finished goods prices index remained near zero, suggesting no change in selling prices from July.