For immediate release: August 25, 2008
Texas Manufacturing Still Sluggish, According to Dallas Fed Survey
DALLAS—Texas manufacturing activity continued to show signs of softness in August, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The August survey can be found at http://dallasfed.org/data/outlook/2008/tmos0808.html
Nearly all indicators of current conditions declined from their July readings, and the index for general business activity remained weak.
The production index was unchanged at zero—an equal number of companies reporting increases and decreases in output.
Indicators for volume of new orders and growth rate of orders remained negative and weakened further, continuing a slowing trend that began earlier in the year.
Both current and future price indexes receded in August, according to the survey; however, price pressures were still prevalent. More than 50 percent of the respondents reported increases in current and future raw materials prices, and about 30 percent indicated that prices of finished goods were rising.
Texas manufacturers are still cautious in their assessments of current conditions. The company outlook index fell from –11.7 to –14.6. The index for the current level of general business activity improved modestly but remained negative.
Respondents remained optimistic about future business activity. Nearly a third of responding firms expect increases in production, capacity utilization and volume of new orders six months from now.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
Texas produces more than 8 percent of the total manufactured goods in the United States, ranking second behind California in factory production.
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