For immediate release: November 26, 2010
Texas Manufacturing Increases in November; All Major Activity Indicators Rise
DALLAS—Texas factory activity increased in November, 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 third consecutive month and higher than its October reading.
All other manufacturing activity indicators also rose, posting their best month since May.
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 turned positive after five months of negative readings.
The capacity utilization index also turned positive, with more than one-quarter of respondents reporting an increase.
Measures of general business conditions improved in November, suggesting the broader economy continued to strengthen. The general business activity index continued its rise in positive territory, as did the company outlook index.
Labor market indicators picked up, and the employment index turned back into positive territory. Hours worked increased for the first time in four months.
Manufacturers’ six-month outlook continued to improve in November. The future indexes for production, new orders, shipments and capacity utilization rose to their highest levels since January.
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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