For immediate release: September 28, 2009
Texas Factory Activity Improves, According to Dallas Fed Survey
DALLAS—Texas factory activity showed signs of bottoming out in September, 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.
The production index, a key indicator of manufacturing activity, was near zero as the number of companies seeing increases and decreases was nearly equal.
Indexes for shipments and new orders both turned positive, indicating growing demand. Indexes for capacity utilization and growth rate of orders also improved but remained slightly negative.
Price pressures were mixed in September. The finished goods prices index remained negative, as producers receiving lower prices for their products outnumbered those receiving higher prices. However, the raw materials price index was positive for the second consecutive month, indicating producers are experiencing rising input prices.
The six–month company outlook was positive in September, and the future general business activity index was positive for the second consecutive month. Half of the respondents expect further increases in 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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