For immediate release: July 25, 2011
Dallas Fed Survey: Texas Manufacturing Activity Picks Up
DALLAS—Texas factory activity expanded in July, 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 5.6 to 10.8.
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.
The shipments and new orders indexes both rose from June to July. The capacity utilization index was positive but remained near zero, indicating little change over the prior month. Thirty-four percent of firms said order volumes increased this month, the highest share since November 2010.
Labor market indicators reflected more hiring and longer workweeks. Twenty-two percent of manufacturers reported hiring new workers, the highest share this year.
Prices and wages increased again in July. The raw materials price index rose slightly while the finished goods price index fell from 10 in June to 4.6 in July, suggesting selling prices rose but at a slower pace than last month.
More than 50 percent of respondents anticipate further increases in raw materials prices over the next six months, while 27 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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