Texas Manufacturing Activity Expands Again in November, Says Dallas Fed Survey
For Immediate Release: Nov. 28, 2016
DALLAS—Texas factory activity increased again in November, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The production index—a key measure of state manufacturing conditions—posted a fifth consecutive positive reading and edged up to 8.8.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Other measures of current manufacturing activity showed mixed movements. The new orders and growth rate of orders indexes posted their third consecutive negative readings in November, but moved up to –1.4 and –0.8, respectively. The capacity utilization index rose three points to 3.6, while the shipments index dipped slightly negative to –1.9.
Perceptions of broader business conditions improved markedly in November. The general business activity index shot up to 10.2 after nearly two years of negative readings. The company outlook index posted a large gain, increasing nine points to a reading of 11.0.
Labor market measures indicated increased employment levels and longer workweeks. The employment index came in at 4.5 in November after a near-zero reading last month. The hours worked index returned to positive territory, coming in at 2.5.
Expectations regarding future business conditions improved notably in November. The index of future general business activity advanced 27 points to 31.6. The index of future company outlook also jumped up more than 20 points, coming in at 34.9. Other indexes for future manufacturing activity pushed markedly higher in to 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.
Media Contact: Justin Jones
Federal Reserve Bank of Dallas
Phone: (214) 922-5449