Skip to content

For immediate release: May 26, 2009

Texas Manufacturing Remains Weak But Outlook Continues to Improve

DALLAS—Texas factory activity remained weak and changed little from April to May, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.  However, the rate of decline in Texas manufacturing has stabilized over the past three months, according to the survey.

Texas produces more than 8 percent of the total manufactured goods in the United States, ranking second behind California in factory production.

Most indicators of future activity continued to improve, suggesting manufacturers expect better conditions over the next six months. The future general business activity index—the survey’s broadest measure of Texas manufacturing trends—turned positive for the first time since September 2007.

Indexes for future production, shipments, new orders and growth rate of orders rose markedly. More than a fourth of manufacturing executives foresee improvement in their firm’s outlook six months from now.

Although still negative, the overall business activity and company outlook indexes strengthened as the share of executives reporting improvements ticked up from April to May.

Indexes for production, new orders and growth rate of orders showed little change from April to May, but dips in the measures for capacity utilization and shipments suggest continued weakness.

In May, declines in input and selling prices were widespread. Firms receiving lower prices for their goods outnumbered those receiving higher prices. Nearly four in 10 companies cited lower raw material prices.

The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.

For more information on the Dallas Fed, visit


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