For immediate release: March 28, 2011
Dallas Fed: Texas Manufacturing Activity Continues to Strengthen
DALLAS—Texas factory activity increased in March, 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—rose sharply to 24, its highest level in nearly a year.
Positive readings in the survey generally indicate expansion of factory activity while readings below zero generally indicate contraction.
Most of the survey’s indicators of current activity moved further into positive territory, signaling stronger growth in manufacturing.
Respondents also noted continued improvement in the broader economy as indexes reflecting general business conditions had positive readings for the sixth month in a row. The company outlook index advanced with more than a quarter of respondents saying their outlooks were improved from the prior month.
Prices continued to climb in March although the pace of increase was either flat or down. Increases in input prices abated slightly; the raw materials price index edged down after posting increases for seven months in a row.
Roughly 60 percent of respondents anticipate further increases in raw materials prices over the next six months, while 36 percent expect higher finished goods prices.
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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