Dallas Fed: Texas Manufacturing Activity Increased in July; Growth Slower Than June
For immediate release: July 29, 2013
DALLAS—Texas factory activity continued to expand in July, 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—fell from 17.1 to 11.4, suggesting output growth continued but at a slower pace than in June.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Some other measures of current manufacturing activity also indicated slower growth in July. The new orders and capacity utilization indexes both remained positive but slipped slightly.
However, the shipments index reached its highest reading in six months.
Perceptions of broader business conditions improved again in July. The general business activity index posted a second consecutive positive reading, edging down from 6.5 to 4.4, and the company outlook index also remained positive but fell.
Labor market indicators reflected a pickup in labor demand. The employment index rose to its highest reading in nearly a year.
Input prices and wages rose in July while selling prices were little changed.
Expectations regarding future business conditions remained optimistic in July. The indexes of future general business activity and future company outlook both fell but remained in strongly positive territory.
Indexes for future manufacturing activity also remained solidly positive.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
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