Dallas Fed: Texas Manufacturing Activity Strengthens in October
For immediate release: October 28, 2013
DALLAS—Texas factory activity picked up further in October, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 11 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 11.5 to 13.3, suggesting output increased at a slightly faster pace than in September.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Other measures of current manufacturing activity also indicated a slightly stronger expansion in October. The capacity utilization, new orders and shipments indexes all edged further into positive territory.
Perceptions of broader business conditions were less optimistic in October. The general business activity index remained positive but fell to 3.6 after rising sharply to 12.8 in September, and the company outlook index posted a fifth consecutive positive reading but moved down to 5.4.
Upward pressure on prices continued in October and compensation costs picked up notably. The raw materials price index posted its highest reading in nine months, and the wages and benefits index reached its highest level since July 2012.
Expectations regarding future business conditions remained optimistic in October. The indexes of future general business activity and future company outlook declined from September levels but remained in strongly positive territory.
Most indexes for future manufacturing activity also fell while remaining 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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