For immediate release: October 25, 2010
Texas Manufacturing Activity Increases in October; Business Conditions Improve
DALLAS—Texas factory activity increased in October, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 9.5 percent of total manufactured goods in the United States, ranking second behind California in factory production.
The production index—a key measure of state manufacturing conditions—was positive for the second consecutive month and slightly higher than its September reading.
Positive readings in the survey indicate expansion or improvement of factory activity while readings below zero indicate contraction or worsening.
The new orders and shipments indexes remained negative for the fifth consecutive month.
The capacity utilization index also turned negative, with more than one-quarter of respondents reporting a decrease.
Measures of general business conditions improved markedly in October, suggesting the broader economy strengthened. After four months in negative territory, the general business activity index rose sharply to positive territory. The company outlook index also turned positive.
Labor market indicators worsened slightly in October. Hours worked fell for the fourth consecutive month, and the employment index dipped back into negative territory.
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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