Dallas Fed: Texas Manufacturing Growth Slower in August
For immediate release: August 26, 2013
DALLAS—Texas factory activity increased but at a slower pace in August, 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—remained positive but fell from 11.4 to 7.3.
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 August. The new orders, capacity utilization and shipments indexes all remained positive but slipped.
Perceptions of broader business conditions improved again in August, with the general business activity and company outlook indexes posting their third consecutive positive readings. The general business activity index edged up from 4.4 to 5.0.
Labor market indicators reflected an increase in hiring but sharply reduced workweeks. The employment index rose to its highest reading in a year but the hours worked index fell into negative territory reaching its lowest reading in four years.
Prices and wages rose in August. The finished goods price index was positive for the first time since March, and the wages and benefits index was positive but edged down.
Expectations regarding future business conditions remained optimistic in August. The indexes of future general business activity and future company outlook showed mixed movements but remained in strongly positive territory.
Indexes for future manufacturing activity also remained solidly positive.
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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