Dallas Fed: Manufacturing activity expands but tariffs increasing uncertainty
Tariffs are hitting some Texas businesses’ bottom line and heightening uncertainty for executives — even though manufacturing activity continues to grow, according to surveys by the Federal Reserve Bank of Dallas.
The Dallas Fed in September asked 364 business executives in the manufacturing and service industries about how tariffs were affecting their companies.
Just over one-third said tariffs are currently negatively affecting their company, 45 percent said there’s no current impact. Five percent reported positive effects.
More than half reported increased uncertainty.
Manufacturers appear divided on the topic. Forty-seven percent of those surveyed said tariffs are negatively affecting their firm, but that figure fell to 39 percent when they were asked how the tariffs could affect them for the long term. Nine percent said tariffs are currently having a positive impact on their business, with 15 percent expecting positive long-term effects.
“Many more Texas firms said that the tariff impact is negative than positive,” said Emily Kerr, Dallas Fed senior business economist, in a news release Monday. “The impact on manufacturers is a bit more polarized.”
Sixty-five percent of manufacturers said tariffs had increased their uncertainty.
Firms in San Antonio have seen minimal to “somewhat increased” impact from tariffs, depending in part on their size, said Rey Chavez, president and CEO of the San Antonio Manufacturers Association.
To read more about how Texas businesses are dealing with tariffs, see Wednesday’s Business section or click here to visit our subscriber website, ExpressNews.com.