For immediate release: September 26, 2011
Dallas Fed: Texas Manufacturing Activity Picks Up
Link to seasonally adjusted survey: /data/outlook/2011/1109/tmos1109.cfm
DALLAS—Texas factory activity increased in September, 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 1.1 to 5.9, suggesting growth picked up this month after stalling in August.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Most other measures of current manufacturing conditions also indicated growth in September. New orders continued to increase, but at a slightly slower pace. The shipments index rose, reaching its highest level since March. The capacity utilization index remained in negative territory in September but rose from –2.8 to –1.3.
Perceptions of general business conditions worsened in September. The general business activity index remained negative for the fifth month in a row with 10 percent of manufacturers perceiving an increase in activity this month, while one quarter noted a decrease.
Labor market indicators reflected higher labor demand growth. Twenty-five percent of manufacturers reported hiring new workers, while 12 percent reported layoffs.
Prices and wages increased in September, according to the survey.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
Phone: (214) 922-5307