Texas Manufacturing Activity Weakens Again in April, Says Dallas Fed Survey
DALLAS—Texas factory activity declined in April, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The production index—a key measure of state manufacturing conditions—posted its second consecutive negative reading at –4.7.
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 continued contraction in April. The new orders and shipments indexes edged up but remained in negative territory. The capacity utilization index pushed further negative to its lowest reading since August 2009.
Perceptions of broader economic conditions remained quite pessimistic for a fourth month in a row. The general business activity index stayed negative but ticked up to –16 in April. The company outlook index moved down to –7.8.
Measures of future business conditions weakened in April. The index of future general business activity fell into negative territory. The future company outlook stayed positive but declined and remains well below the levels seen throughout 2014. Indexes of future manufacturing activity also moved down but remained in solid positive territory.
Texas produces more than 11 percent of total manufactured goods in the United States, ranking second behind California in factory production.
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