For immediate release: December 27, 2010
Texas Manufacturing Activity Continues to Grow
DALLAS—Texas factory activity increased in December, 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 fourth consecutive month.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
The general business activity index remained positive, with nearly a quarter of respondents reporting improved activity.
Labor market indicators improved notably this month. The employment index reached its highest level since early 2007. Twenty-four percent of firms reported hiring new workers, compared with 9 percent reporting layoffs.
Prices climbed again in December. Input costs remained on an upward trend, with the raw materials price index continuing to increase. More than half of respondents anticipate further increases in raw materials prices over the next six months.
Manufacturers’ six-month outlook continued to improve. The future indexes for production and shipments edged up further, and the future new orders index rose to its highest level in four years.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
Phone: (214) 922-5307