The Dallas Fed's manufacturing business index fell to -10.4 in November, down from -5.0, indicating a deeper contraction in Texas manufacturing activity. Despite the negative headline figure, the report noted significant increases in production, new orders, and capacity utilization, suggesting stronger operational performance within the sector. The mixed results highlight a contrast between improved output metrics and declining sentiment among manufacturers. Forward-looking indicators, such as future production and business activity, showed modest improvements, potentially influencing market strategies ahead of upcoming national manufacturing and inflation data releases.