Dallas Fed: Texas Manufacturing Continued to Expand in January; Demand Rises Sharply
For immediate release: January 27, 2014
DALLAS—Texas factory activity increased for the ninth month in a row in January, 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—edged up from 6 to 7.1, indicating output grew at a slightly stronger pace than in December.
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 stronger expansion in January. The new orders index surged, reaching a seven-month high and suggesting a sharp rise in demand.
The shipments index also rebounded strongly in January. Growth in capacity utilization held steady.
Perceptions of broader business conditions remained optimistic in January. The general business activity index posted its eighth consecutive positive reading and was nearly unchanged at 3.8. The company outlook index also posted its eighth positive reading in a row.
Labor market indicators reflected increased hiring and longer workweeks. January’s employment index edged up for a second straight month, and the hours worked index returned to positive territory.
Expectations regarding future business conditions remained optimistic in January, with the future company outlook index reaching its highest reading in three years. Indexes for future manufacturing activity showed mixed movements but remained in solidly positive territory.
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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