Dallas Fed: Texas Manufacturing Activity Increased Sharply in May
For immediate release: May 28, 2013
DALLAS—Texas factory activity expanded in May, 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—rose from –0.5 to 11.2, indicating a notable pickup in output.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Stronger manufacturing activity was reflected in other survey measures as well. The new orders and shipments indexes both turned positive after negative readings in April. The capacity utilization index moved further into positive territory.
Perceptions of broader business conditions continued to worsen in May. The general business activity index remained negative but moved up five points to –10.5, and the company outlook index declined further into negative territory, reaching its lowest level since July 2010.
Labor market indicators reflected weaker labor demand. The employment index fell to –6.3 in May, registering its first negative reading this year and reaching its lowest level since November 2009.
Price movements were mixed in May; input prices and wages rose while selling prices declined.
Expectations regarding future business conditions were mixed. The index of future general business activity remained negative in May, while the index of future company outlook remained positive.
Indexes for future manufacturing activity remained in strong positive territory.
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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