Texas Manufacturing Continues to Increase, Outlooks Improve, Says Dallas Fed Survey
For immediate release: October 27, 2014
DALLAS—Texas factory activity increased again in October, 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—fell from 17.6 to 13.7, indicating output grew but at a slightly slower pace than in September.
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 reflected continued growth in October. The new orders index rose notably, reaching a six-month high. Although the capacity utilization index edged down and the shipments index slipped, more than a quarter of firms noted increases in these measures over September levels.
Perceptions of broader business conditions remained optimistic in October. The general business activity index held steady at a solid reading of 10.5. The company outlook index surged, reaching its highest level in six months.
Labor market indicators reflected continued employment growth and longer workweeks. The October employment index posted its fifth robust reading, and the hours worked index held steady.
Expectations regarding future business conditions remained optimistic in October. The index of future general business activity inched up, while indexes of future manufacturing activity showed mixed movements but remained in solidly positive territory. The index for future employment shot up, suggesting an increase in headcounts six months from now.
For this month’s Texas Business Outlook Surveys, respondents were also asked supplemental questions on credit conditions in Texas.
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