For immediate release: July 27, 2009
Texas Factory Activity Remains Weak, According to Dallas Fed Survey
DALLAS—Declines in Texas manufacturing continued to moderate in July, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 8 percent of total manufactured goods in the United States, ranking second behind California in factory production.
Nearly all indexes of current factory activity posted seasonal declines; however, soon-to-be-released seasonally adjusted data suggest the rate of contraction has slowed.
Unadjusted indexes for production, capacity utilization and shipments remained negative, but the largest group of companies—well over 40 percent—reported activity was unchanged.
Nearly half of the manufacturers said growth in new orders was flat in July, according to the survey.
The company outlook and business activity indexes—the survey’s broadest measures of state manufacturing trends—continued to reflect widespread downbeat sentiment.
Downward price pressures were more prevalent for finished goods than raw materials. Producers receiving lower prices for their products greatly outstripped those receiving higher prices, while firms paying less for raw materials outnumbered those paying more by a slight margin.
Most indexes for future activity stayed positive in July, suggesting that firms expect improved conditions six months from now. The future company outlook index was positive for the fourth consecutive month, and nearly 36 percent of producers expect increases in production and 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.
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