For immediate release: March 9, 2011
Dallas Fed Survey: Texas Manufacturing Activity Expands
DALLAS—Texas factory activity increased in May, 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 from 8 to 13, with 27 percent of respondents noting output increased from April.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Other measures of current manufacturing conditions also indicated growing activity, although the pace of new orders slowed.
The capacity utilization index edged up from its April level while the shipments index held steady at a reading of 8. The new orders index moved down from 4 to 1, with the share of manufacturers reporting increased order volumes falling from 30 percent to 22 percent.
Prices climbed again this month, although at a reduced rate, and labor costs continued an upward trend.
Labor market indicators reflected more hiring and longer workweeks. The employment index came in at 12, with the share of manufacturers adding workers reaching its highest level this year.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
Next release: June 27.
Phone: (214) 922-5307