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Texas Manufacturing Activity Stalls in January, Says Dallas Fed Survey; Outlook Worsens

For immediate release: January 26, 2015

Texas Manufacturing Activity Stalls in January, Says Dallas Fed Survey; Outlook Worsens

DALLASTexas factory activity was flat in January, 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—came in at 0.7, indicating output was essentially unchanged from December.

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 sluggish activity in January. The capacity utilization index fell to 5.1, its lowest reading in five months, and the new orders index registered its first negative reading since April 2013. The shipments index plunged but remained positive.

Perceptions of broader economic conditions worsened in January. The general business activity index dropped to –4.4. The company outlook index turned negative as well.

Indexes reflecting future business conditions fell notably in January. The index of future general business activity fell into negative territory, while the index of future company outlook remained positive but posted its lowest reading in more than two years. Indexes of future manufacturing activity also declined in January but remained in 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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Media contact:
Justin Jones
Phone: (214) 922-5449
Email: justin.jones@dal.frb.org