Dallas Fed: Texas Manufacturing Activity Expands in October, but at a Slower Pace
For immediate release: October 29, 2012
DALLAS—Texas factory activity increased in October, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 9 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—dipped from 10 to 7.9, indicating slightly slower growth.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Most other measures of current manufacturing activity also suggested growth in October, although new orders declined.
The capacity utilization index edged up from 9.3 to 11.4. The shipments index held steady at 4.7, suggesting shipments rose at about the same pace as in September.
The new orders index fell from 5.3 to –4.5, reaching its lowest level this year and indicating a decrease in demand.
Perceptions of general business conditions improved slightly in October. The general business activity index rose to 1.8, registering its first positive reading since June.
Prices increased in October. The raw materials price index reached its highest level since May 2011; it jumped 13 points to 35.6, indicating a sharp rise in input costs.
Expectations regarding future business conditions were more optimistic in October. The index of future general business activity jumped from 5.5 to 16.8.
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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