03:48 PM EST, 01/27/2025 (MT Newswires) -- Texas manufacturing activity unexpectedly rose this month as orders increased, while expectations on the six-month horizon improved, according to the Federal Reserve Bank of Dallas.

The general business activity index climbed to a reading of 14.1 in January from 4.5 in December, the Dallas Fed's manufacturing outlook survey showed Monday. Analysts surveyed in a Bloomberg poll were expecting a month-over-month decline to minus 3.

Production, which the Fed branch calls a key measure of state manufacturing conditions, more than doubled to 12.2. New orders moved up 6.2 points to 7.7, the regional Fed's survey showed. The shipments index climbed eight points this month to 8.7.

"The Texas manufacturing sector saw a pickup in the pace of growth in January," said Emily Kerr, senior business economist at the Dallas Fed. "Employment growth was modest, but most other indicators of state factory activity suggest healthy expansion."

The index charting employment ticked up to 2.2 in January from 0.4 the month prior. About 14% of firms in the survey noted net hiring, compared with the 12% that reported layoffs.

Upward pressure on prices and wages increased this month, according to the regional Fed.

Six months out, expectations for general business activity jumped to 35.5 this month from 20.6 in December. The future production index climbed by nearly 11 points to 44.8, according to the Fed branch's report.

The forward-looking indicator for new orders improved to 46.3 from 37.6 while the shipments gauge rallied about 12 points to 47.8. The future employment index dipped 1.6 points to 27.7.