Texas manufacturing expands at slower pace in June, says Dallas Fed survey
For Immediate Release: June 26, 2017
DALLAS—Texas factory activity continued to expand, but at a slower pace in June, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
The production index—a key measure of state manufacturing conditions—fell 11 points to 12.3 but remained positive.
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 indicated that growth moderated. The new orders and growth rate of orders indexes fell several points each, coming in at 9.6 and 4.7, respectively. The capacity utilization index moved down to 12.3, and the shipments index retreated to 8.5.
Perceptions of broader business conditions improved in June, although the indexes were less positive than in May. The general business activity index edged down to 15.0. The company outlook index fell nine points to 10.8.
Labor market measures indicated employment gains and longer workweeks in June. The employment index edged up to 9.6. The hours worked index dropped to 8.9, down seven points from a six-year high last month.
“The increase in the employment index was certainly a bright spot in this month’s report,” said Emily Kerr, Dallas Fed senior business economist. “That measure has been positive all year after exhibiting a lot of weakness during the oil bust, and the fact that it pushed further into positive territory suggests that more firms are feeling confident enough to be hiring again.”
Expectations regarding future business conditions continued to improve. The indexes of future general business activity held steady at 31.9, while the index of future company outlook came in at 35.6, up five points from last month’s reading. Other indexes for future manufacturing activity showed mixed movements but remained solidly in 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:
Jennifer Chamberlain
Federal Reserve Bank of Dallas
Phone: (214) 922-6748
E-mail: jennifer.chamberlain@dal.frb.org