For immediate release: July 28, 2008
Texas Manufacturing Remains Soft, According to Dallas Fed Survey
DALLAS—Texas manufacturing activity remained soft in July, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Several indicators for current conditions improved but remained weak, the survey found. Indicators for capacity utilization, volume of shipments, number of employees and average employee work week turned positive, while the index for production was unchanged.
Sentiment on general business activity remained muted with 38 percent of respondents stating the economy had worsened since last month. The company outlook index, which tracks current business, remained negative but improved slightly.
Upward price pressures persisted but the index values were slightly lower. The raw materials price index drifted lower, with 68 percent of the manufacturers reporting higher costs compared with 75 percent in June. The number of respondents reporting increases in finished goods prices remained flat.
The outlook for future factory activity remained guardedly optimistic. The indexes for future production, capacity utilization, volume of shipments and volume of orders dipped but remained positive.
The Dallas Fed conducts the Texas Manufacturing Outlook 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, ranking second behind California in factory production.
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