For immediate release: November 27, 2006
Dallas Fed Reports Factory Activity Continues to Expand
DALLAS—Manufacturing activity in Texas continued to expand in November, but several indexes were weaker than last month, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The survey’s production index was essentially unchanged in November, 8.5 compared with 8.4 in October. Readings above zero denote expansion, while negative levels indicate contraction.
“The report suggests activity continues to expand overall, but some industries are doing better than others,” said Dallas Fed economist Fiona Sigalla. “The majority of firms expect increases in production and the volume of new orders and shipments six months from now.”
The survey found that manufacturers were more optimistic about their companies’ operations than the rest of the economy. Sentiment on general business activity, while slightly negative, was unchanged from October.
The Dallas Fed conducts the survey monthly to obtain a timely assessment of the state’s factory activity.
Last year, Texas produced almost 9 percent of the total manufactured goods in the United States. Texas ranks second behind California in factory production and first as an exporter of manufactured products.
For more information on the Texas Manufacturing Outlook Survey, visit the Dallas Fed web site at www.dallasfed.org.
Phone: (214) 922-5307