For immediate release: January 30, 2012
Dallas Fed: Texas Manufacturing Activity Picks Up in January
Link to seasonally adjusted survey: /data/outlook/2012/1201/tmos1201.cfm
DALLAS—Texas factory activity increased in January, 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 0.2 to 5.8, suggesting growth resumed this month.
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 January. The new orders index and shipments index both turned positive after two months in negative territory.
Capacity utilization increased further in January, with 28 percent of manufacturers noting higher capacity utilization, the largest share in nine months.
Perceptions of broader economic conditions were notably more positive in January. The general business activity index shot up to 15.3 after dipping into negative territory in December, and the company outlook index also increased markedly from 5 to 13.5. Both indexes reached their highest readings in 10 months.
Labor market indicators reflected continued labor demand growth, with the employment index moving further into positive territory. Twenty-one percent of firms reported hiring new workers, while nine percent reported layoffs.
Expectations regarding future business conditions were markedly more optimistic in January. The index of future general business activity rose sharply from 9.5 to 22.3, reaching its highest level in almost a year.
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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