Factory activity in Texas expanded at a slower-than-expected monthly pace in March as growth in orders reversed, the latest survey data from the Federal Reserve Bank of Dallas showed.

The Dallas Fed's general business activity index for manufacturing fell to a seasonally adjusted reading of 8.3 from 13.1 in February and came in below Econoday's consensus forecast of 9.8. The company outlook index also tumbled month over month, to 6.0 from 14.2.

Nearly all other measures of manufacturing activity signaled growth in March, including the production index, which increased to 11.5 from 10.1 in February.

Meanwhile, the new orders index fell to 2.4 from 6.9, and the growth rate of orders index sank to negative 1.9 from 3.4.

On expectations regarding business conditions in the next six months, most indexes remained positive, although the index of future company outlook dropped to 17.5 from 26.7.