For immediate release: June 29, 2009
Declines in Texas Manufacturing Continue to Moderate; Outlook Positive, According to Dallas Fed Survey
DALLAS—Declines in Texas factory activity moderated further in June, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The June survey can be found at: http://dallasfed.org/data/outlook/2009/tmos0906.html
Texas produces more than 8 percent of total manufactured goods in the United States, ranking second behind California in factory production.
Indexes for production, capacity utilization, new orders and growth rate of orders improved slightly from May; however, they remained negative.
Fewer respondents reported price declines in the June survey. Firms receiving lower prices for goods outnumbered those receiving higher prices by a 4–to–1 margin, down from 11–to–1 in May. The share of manufacturers reporting decreases in raw material prices dropped from 38 percent in May to 20 percent in June.
Sentiment regarding business prospects remained positive. The future general business activity index dipped but stayed positive for the second consecutive month, and 30 percent of manufacturers expect business to improve six months from now, according to the survey.
Indexes for future production, capacity utilization, new orders and growth rate of orders remained positive and were little changed in June.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
For more information on the Dallas Fed, visit www.dallasfed.org.
Phone: (214) 922-5307