For immediate release: August 30, 2010
Texas Manufacturing Activity Remains Weak
DALLAS—Texas factory activity was unchanged in August, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The production index—a key measure of state manufacturing conditions—suggested a third consecutive month of little-to-no growth.
Texas produces more than 9.5 percent of total manufactured goods in the United States, ranking second behind California in factory production.
The volume of new orders index, capacity utilization and shipments indexes suggested further contraction of business. Manufacturers also reported that general business activity continued to decline in August, although at a slower pace.
The employment index turned negative for the first time in six months, due to a larger share of firms reporting layoffs.
The raw materials price index in August reflected a surge in input costs with 28 percent of manufacturers reporting an increase in raw materials prices, while only 4 percent noted a decrease.
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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