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For immediate release: January 29, 2007

Texas Manufacturing Strengthens in January

DALLAS—Manufacturing in Texas picked up steam in January after a slowdown in activity the previous month, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.

The production index was 13.8 in January, compared with –5.2 in December.

Most other indexes—including capacity utilization, volume of new orders and shipments—also turned positive.

“The January survey shows there is a lot of strength in the Texas economy,” said Dallas Fed economist Fiona Sigalla. “The index movements over the last six months suggest continued expansion but at a slower pace.”

Sentiment on general business activity increased to 4.7 in January from –8.8 last month, according to the survey. The percentage of firms reporting improved conditions also increased.

Additionally, more that half of manufacturers responding to the survey expect increases in production, capacity utilization, shipments and volume of new orders six months from now.

The Dallas Fed conducts the survey monthly to obtain a timely assessment of the state’s factory activity.

Texas produces more than 8 percent of the total manufactured goods in the United States. Texas ranks second behind California in factory production and first as an exporter of manufactured products.

The Dallas Fed’s Texas Manufacturing Outlook Survey can be found at


Media contact:
James Hoard
Phone: (214) 922-5307