For immediate release: November 30, 2009
Texas Manufacturing Expands in November, According to Dallas Fed Survey
DALLAS—Texas factory activity showed signs of growth in November, 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 state manufacturing conditions, turned positive for the first time since July 2008.
Other key indexes of current factory activity—including capacity utilization, shipments, new orders and growth rate of orders—also moved into positive territory.
The business activity and company outlook indexes also improved, according to the survey. After two years in negative territory, they came in close to zero in November as the number of companies reporting better business conditions and those noting further weakness were nearly equal.
Price pressures were mixed. The finished goods price index remained negative, although the great majority of respondents reported no change in selling prices. The raw materials price index was positive and rose, indicating that producers continue to see rising input costs. Expectations for raw material price increases over the next six months were elevated as well.
Several indexes for future activity dipped in November, but they remain positive, suggesting that manufacturers still expect demand to pick up in coming months.
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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