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Texas Manufacturing Activity Contracts Further in May, Says Dallas Fed Survey

For immediate release: May 26, 2015

DALLAS—Texas factory activity declined again in May, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.

The production index—a key measure of state manufacturing conditions—fell to its lowest reading in six years at –13.5.
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 May. The new orders index held steady but remained negative and the shipments index fell further into negative territory. The capacity utilization index was negative again as well and edged down.

Perceptions of broader economic conditions worsened further this month. The general business activity index fell to –20.8 in May and the company outlook index moved down to –10.5. Both readings are the lowest since summer 2009.

Measures of future business conditions improved in May. The index of future general business activity surged back to positive territory. The future company outlook jumped further positive. Indexes of future manufacturing activity also moved up markedly, pushing further into 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.

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Media contact:
Justin Jones
Federal Reserve Bank of Dallas
Phone: 214-922-5449
Email: Justin.Jones@dal.frb.org