Texas Manufacturing Picks up Pace in June, Says Dallas Fed Survey
For immediate release: June 30, 2014
DALLAS— Texas factory activity increased again in June, 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 to 15.5, indicating output grew at a faster pace than in May.
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 reflected growth in June. The new orders index rose slightly further into positive territory, but remained below levels seen earlier in the year.
Both the capacity utilization and shipments indexes held steady in positive territory. Nearly a third of manufacturers noted an increase in volumes in June.
Perceptions of broader business conditions were more optimistic this month. The general business activity index rose from 8 to 11.4.
Labor market indicators reflected stronger employment growth and longer workweeks. The June employment index rebounded, and the hours work index edged up slightly in positive territory.
Upward pressure on input prices was seen in June. The raw materials price index posted its second strong positive reading in a row, and 39 percent of respondents anticipate further increases in raw materials prices over the next six months.
Expectations regarding future business conditions were more optimistic in June. The index of future general business activity pushed further into positive territory, and the index of future company outlook reached its highest level since 2011.
Indexes for future manufacturing activity also pushed 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.
Federal Reserve Bank of Dallas