For immediate release: October 29, 2007
Texas Manufacturing Expands Modestly in October, Survey Finds
DALLAS—Texas factory activity expanded slightly in October; however, indexes suggest that manufacturers remain cautious about general business conditions, according to the Federal Reserve Bank of Dallas' Texas Manufacturing Outlook Survey.
Texas produces more than 8 percent of the total manufactured goods in the United States, ranking second behind California in factory production.
Almost all current production indicators increased modestly from September, the survey of 122 business executives found.
The October production index rose from 4.5 to 10.6, and the capacity utilization index increased from 1.8 to 10.7. The index for volume of new orders was also stronger, up from 2.7 to 8.2. The index for volume of shipments improved from 5.4 to 11.5.
"While the latest survey indicates that factory activity is expanding, there are nonetheless signs of softness," said Dallas Fed economist Fiona Sigalla.
The company outlook index was essentially unchanged near zero. The index for the current level of general business activity declined from –4.6 to –6.6.
Additionally, more producers reported price increases for raw materials than finished goods.
The Dallas Fed conducts the survey monthly to obtain a timely assessment of the state's factory activity.
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