Dallas Fed: Texas Manufacturing Increases—But at a Slower Pace
For immediate release: February 25, 2013
DALLAS—Texas factory activity expanded in February, 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—fell from 12.9 to 6.2, suggesting growth continued but at a slower pace.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Other measures of current manufacturing activity also indicated slower growth in February. The new orders index was positive for the second month in a row, although it fell from 12.2 to 2.8.
The capacity utilization index declined from 14.0 to 5.4, suggesting utilization rates increased less than last month.
The shipments index plunged almost 20 points but stayed in positive territory, indicating slightly higher shipments in February.
Perceptions of broader economic conditions improved a bit in February. The general business activity index was positive for the third month in a row, although it dipped from 5.5 to 2.2.
Price pressures diminished in February. The raw materials price index came in at 15.8, down from 27.8 in January, and the finished goods price index dropped from 10.2 to 4.6.
Expectations regarding future business conditions continued to reflect optimism. The index of future general business activity edged up from 9.2 to 10.8.
Indexes for future manufacturing activity fell, but remained in solid positive territory this month.
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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