Dallas Fed: Texas Manufacturing Growth Stalls in November; Company Outlook Worsens
For immediate release: November 26, 2012
DALLAS—Texas factory activity was little changed in November, 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—came in at 1.7, indicating output barely increased from October.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Other survey measures suggested flat manufacturing activity in November. The new orders index came in at 0.4, suggesting that demand was unchanged from October.
The capacity utilization index fell more than ten points to –1.3, indicating utilization rates were little changed from last month.
Perceptions of broader business conditions worsened in November. The general business activity index returned to negative territory, and the company outlook index registered its first negative reading since April.
Labor market indicators were mixed. The employment index edged up to 6.7 in November, but the hours worked index dipped from –5.9 to –7.1.
Indexes reflecting future business conditions fell sharply in November. The index of future general business activity plunged from 16.8 to –5.3, its lowest reading in four months.
Indexes for future manufacturing activity also fell this month but remained positive.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.