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For immediate release: March 28, 2011

Texas Manufacturing Activity Increases in April; Pace of Expansion Slows

DALLAS Texas factory activity continued to expand in April, 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— moved down from 24 to 8, suggesting slower growth in output.

Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.

Other indexes of current manufacturing activity—capacity utilization, new orders and shipments—remained positive but retreated from their March levels.

Respondents noted continued improvement in the broader economy as indexes reflecting general business conditions had positive readings for the seventh month in a row.

Labor market indicators showed mixed movements in April. The employment index edged up to its highest reading this year, but hours worked were essentially flat after increasing for five consecutive months.

The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.


Media contact:
Alexander Johnson
Phone: (214) 922-5288