Texas Manufacturing Slump Moderates, Outlooks Improve in July, Says Dallas Fed Survey
For immediate release: July 27, 2015
DALLAS—Texas factory activity declined slightly in July, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The production index—a key measure of state manufacturing conditions—remained negative but rose for a second month in a row to –1.9.
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 rose in July. The new orders index rebounded strongly, posting a positive reading after six months in negative territory, while the shipments index increased but remained in negative territory. The capacity utilization index was negative again as well but edged up.
Perceptions of broader economic conditions were mixed in July. The general business activity index remained negative but rose for a second month in a row to –4.6. The company outlook index surged nearly nine points to post its first positive reading in seven months at 1.2.
Measures of future business conditions improved notably in July. The indexes of future general business activity and future company outlook both posted double-digit increases. Indexes of future manufacturing activity pushed 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.
Federal Reserve Bank of Dallas