Texas Manufacturing Activity Picks up Pace Again, Says Dallas Fed Survey
For immediate release: July 28, 2014
DALLAS—Texas factory activity increased again in July, 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 15.5 to 19.1, indicating output grew at a faster pace than in June.
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, capacity utilization and shipments indexes rose markedly. The July readings for these indexes were all more than twice their 10-year averages, suggesting notably robust manufacturing growth.
Perceptions of broader business conditions were more optimistic in July. The general business activity index edged up from 11.4 to 12.7, pushing to its highest level in 10 months.
Labor market indicators reflected continued employment growth and longer workweeks. The July employment index posted a second robust reading, although it edged down, and the hours worked index edged up.
Expectations regarding future business conditions remained optimistic in July. The index of future general business activity inched up, while the index of future company outlook fell after reaching a multiyear high June.
Indexes for future manufacturing activity showed mixed movements in July but remained in solidly positive territory.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
Federal Reserve Bank of Dallas