Dallas Fed: Texas Manufacturing Activity Picks up Again in November
For immediate release: November 25, 2013
DALLAS—Growth in Texas factory activity picked up for a third consecutive month in November, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 11 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 13.3 to 16.9, reaching its highest reading in five months.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Other measures of current manufacturing activity indicated further expansion in November. The new orders index remained in positive territory similar to its October level, marking a seventh consecutive month of increased demand.
The capacity utilization index rose further into positive territory, reaching its highest level since March 2011. The shipments index also edged further into positive territory.
Perceptions of broader business conditions remained modestly optimistic in November. The general business activity index posted its sixth consecutive positive reading but edged down to 1.9.
Labor market indicators reflected continued employment growth and longer workweeks. The November employment index was down slightly from its October level but still indicative of increased employee headcounts, and the hours worked index suggested a slight increase in average workweek length.
Expectations regarding future business conditions remained optimistic in November. The indexes of future general business activity and future company outlook both remained positive.
Indexes for future manufacturing activity pushed further into 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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