Dallas Fed Manufacturing Activity Index Falls to 9.8 in September, Beating Consensus

Texas manufacturing activity moderated in September but remained in expansion territory, topping market expectations. The Federal Reserve Bank of Dallas reported its general business activity index fell to 9.8 from 11.6 in August, outperforming the consensus estimate of 6.0. Key operational metrics showed robust momentum, with the production index surging to 29.5 from 16.1, new orders rising to 30.7 from 22.0, and shipments climbing to 24.8. However, forward-looking sentiment weakened as the future general business outlook index dropped to 8.7 from 19.2 amid concerns over fuel prices, tariffs, and margin compression.