For immediate release: October 26, 2009
Texas Manufacturing Activity Falls In October But Outlook Improves
DALLAS—Texas factory activity declined in October, 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 current manufacturing activity—edged further into negative territory, suggesting output in October contracted after remaining stable in September.
Current activity indexes for new orders and shipments turned negative, erasing gains seen last month.
The company outlook and business activity indexes remained slightly negative, but a growing majority of executives reported no changes from the prior month.
Price pressures remained tame, with about three-fourths of respondents reporting no change from the previous month in input and selling prices. The raw materials price index rose as firms reporting higher input prices continued to significantly outpace those seeing declines. Some companies continued to report net declines in prices for their manufactured goods, keeping the finished goods price index negative.
Several indexes of future activity strengthened in October. The future indexes for capacity utilization and shipments climbed to their highest levels in 26 months. The six–month production index was positive in October, continuing a trend that began in March. Future outlook and future business activity indexes also strengthened.
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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