For immediate release: October 31, 2011
Dallas Fed: Texas Manufacturing Activity Expands in October
DALLAS—Texas factory activity increased in October, 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—remained positive but edged down from 5.9 to 4.1, suggesting growth slowed slightly.
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 growth in October, and the pace of new orders increased.
Perceptions of general business conditions improved in October. The general business activity index jumped up from -14.4 to 2.3, its first positive reading in six months.
Labor market indicators reflected higher labor demand growth. Twenty-one percent of manufacturers reported hiring new workers, while 6 percent reported layoffs. This share of layoffs represents the lowest figure since 2006.
Expectations regarding future business conditions were notably more optimistic in October. The index of future general business activity advanced to 14.7 after dipping into negative territory in September.
Most indexes of future manufacturing activity also increased considerably in October, reaching their highest levels since spring.
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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