For immediate release: April 30, 2007
Texas Manufacturing Activity Remains Solid, Survey Finds
DALLAS—Factory activity in Texas continues to expand at a steady pace, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Indexes for production, capacity utilization and volume of shipments decreased slightly from March to April but remained higher than January and February values, the survey found.
“The survey indicates that Texas manufacturing activity expanded at a solid rate in April,” said Dallas Fed economist Fiona Sigalla. “This finding is consistent with other economic indicators that suggest the Texas expansion has leveled off at a good pace after decelerating from robust growth last year.”
The production index was 24.3
in April, compared with 27.2 in March.
Indexes for volume of new orders and growth rate of orders also moved lower in April, the second straight monthly decline since peaking in February.
The index for company outlook inched down from 19.1 to 18.2, with 28 percent of business leaders reporting improved conditions in April. The general business activity index increased, from 12.7 to 15.9.
Firms remain optimistic about the outlook for business activity. The number of survey respondents expecting a higher level of general business activity six months from now increased to 20.7 in April from 14.8 in March.
The Dallas Fed conducts the survey monthly to obtain a timely assessment of the state’s factory activity. One hundred fifteen leading manufacturers responded to the April survey.
Texas produces more than 8 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 additional perspective on the Texas Manufacturing Outlook Survey, visit www.dallasfed.org
Phone: (214) 922-5307