Survey Conducted with 87 Texas Manufacturers
Texas Accounts for About 10% of U.S. Manufacturing
Trump's Tariffs Described as "Chaos" and "Madness"
The Texas Manufacturing Index, which is used to assess trends in U.S. manufacturing, has plunged to its worst level in five years due to President Donald Trump's tariff policies.
According to Bloomberg News on April 29, the Dallas Federal Reserve reported that the general business activity index for manufacturing in the Texas region stood at -35.8 in April, marking its lowest level since May 2020. This index is calculated based on a survey of 87 Texas manufacturers conducted by the Dallas Fed.
Texas accounts for about 10% of total U.S. manufacturing, and this index is used as a key indicator to assess the health of the U.S. economy and to predict future economic activity.
Local business leaders described President Trump's tariff policies with words such as "chaos" and "madness."
The current production index showed a modest increase, but the company outlook index fell to its lowest level since the COVID-19 pandemic due to supply chain disruptions and the difficulty of making forecasts. Both the raw materials price index and the finished goods price index remained above average.
About 60% of respondents said that tariff increases would have a negative impact on their business this year.
Most companies said they planned to pass on the increased costs to customers, but about 38% responded that it is becoming increasingly difficult or much more difficult to do so.
Companies also expressed concern about whether they could withstand another round of price increases, noting that U.S. prices have risen by more than 20% over the past four years, reducing consumers' purchasing power.
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