Dallas Fed: Texas Manufacturing Activity Increased Sharply in June
For immediate release: June 24, 2013
DALLAS—Texas factory activity increased sharply in June, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 9 percent of total manufactured goods in the United States, ranking second behind California in factory production.
The production index—a key measure of state manufacturing conditions—rose from 11.2 to 17.1, the highest reading in more than two years.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Stronger manufacturing activity was reflected in other survey measures as well. The new orders and shipments indexes both rose markedly. The capacity utilization index moved further into positive territory, reaching a two-year high.
Perceptions of broader business conditions rebounded strongly in June. The general business activity index rose to 6.5 after posting negative readings in April and May, and the company outlook index soared, reaching its highest level in 16 months.
Labor market indicators reflected steady labor demand. The employment index was zero in June, suggesting no change in employment levels.
Price movements were mixed in June; input prices and wages rose while selling prices declined.
Expectations regarding future business conditions improved significantly. The index of future general business activity surged in June, and the index of future company outlook rose sharply as well.
Indexes for future manufacturing activity moved up, pushing further into positive territory.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.