Texas Manufacturing Activity Still Contracting in June, Says Dallas Fed Survey
For immediate release: June 29, 2015
DALLAS—Texas factory activity declined again in June, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The production index—a key measure of state manufacturing conditions—rose to –6.5 but remained in negative territory, suggesting a fourth consecutive month of contracting output.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
The new orders, shipments and capacity utilization indexes moved up in June but remained negative, while the growth rate of orders index edged down further into negative territory.
Perceptions of broader economic conditions worsened further, although not as sharply in June as in prior months. The general business activity index jumped nearly 14 points to –7, its highest reading since January. The company outlook index moved up but remained negative.
Measures of future business conditions improved in June. The index of future general business activity edged up and the index of future company outlook edged down but was still positive. Indexes of future manufacturing activity moved down slightly 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.
For this month’s Texas Business Outlook Surveys, respondents were also asked supplemental questions on the impact of lower energy prices and concerns affecting the outlook of their company.
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