For immediate release: September 27, 2010
Texas Manufacturing Improves in September
DALLAS—Texas factory activity rose slightly in September, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Texas produces more than 9.5 percent of total manufactured goods in the United States, ranking second behind California in factory production.
The production index—a key indicator of state manufacturing conditions—edged back into positive territory following a reading near zero in August.
Positive readings in the survey indicate expansion of factory activity while readings below zero indicate contraction.
The new orders and shipments indexes remained negative for the fourth month in a row but moved up from their August readings.
The growth rate of orders index rose, suggesting the pace of incoming orders may be stabilizing. Meanwhile, the September capacity utilization index climbed back into positive territory, with the share of manufacturers reporting an increase rising from 22 to 28 percent.
The raw materials price index remained steady, and finished goods prices stabilized, ending a three-month streak of declines.
Labor market indicators improved slightly in September. Nineteen percent of survey respondents said they hired additional employees, while 17 percent reported layoffs.
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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