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Texas Manufacturing Activity Remains Flat in February, Says Dallas Fed Survey

For immediate release: February 23, 2015

DALLASTexas factory activity posted a second month of no growth in February, 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—remained near zero (0.7), indicating output was essentially unchanged from January levels.

Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.

Other measures of current manufacturing activity reflected contraction in February. The new orders index pushed further into negative territory, reaching its lowest reading since June 2009. The shipments index also reached its lowest reading since 2009, and the capacity utilization index turned negative.

Perceptions of broader economic conditions remained rather pessimistic this month. The general business activity index moved further negative to –11.2, posting its lowest reading in nearly two years. The company outlook index remained slightly negative.

Expectations regarding future business conditions rebounded somewhat in February. The index of future general business activity shot into positive territory after posting a negative reading in January. The index of future company outlook pushed further positive, although it remains well below the index level seen throughout 2014. Indexes of future manufacturing activity showed mixed movements in February but remained in solidly positive territory.

For this month’s Texas Business Outlook Surveys, respondents were also asked supplemental questions on employment expectations and the labor market in Texas.

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