For immediate release: January 31, 2011
Texas Manufacturing Activity Flat in January; Six-Month Outlook Improves
DALLAS— Texas factory activity held steady in January, 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—came in at zero, suggesting output was unchanged from December.
Positive readings in the survey generally indicate expansion of factory activity while readings below zero generally indicate contraction.
Other measures of current activity signaled continued growth in manufacturing, albeit at a slower pace. The general business activity index and the company outlook index fell but remained positive for the fourth month in a row.
Prices climbed again in January. The raw materials price index reached its highest level since mid-2008, with the share of manufacturers who saw an increase in input costs surging to 64 percent, compared with only 2 percent who saw a decrease.
All future activity indexes rose this month. The future indexes for production and shipments moved up to their highest levels in four years, and the future new orders index reached its highest level since 2005, with more than half of manufacturers expecting an increase in order volumes over the next six months.
The future general business activity index advanced to a six-year high.
For this month's survey, manufacturers were asked supplemental questions on hiring plans. Nearly half of respondents expect their firm to increase employment over the next six to 12 months.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
Phone: (214) 922-5288