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Texas Manufacturing Activity Picks up Pace, Says Dallas Fed Survey

For immediate release: December 29, 2014

DALLASTexas factory activity increased again in December, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.

Texas produces more than 11 percent of total manufactured goods in the United States, ranking second behind California in factory production.

The production index—a key measure of state manufacturing conditions—rose from 6 to 15.8, indicating output grew at a faster pace in December.

Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.

Other measures of current manufacturing activity continued to reflect growth in December. The capacity utilization index rose from 9.8 to 12.4 in December. The new orders index declined from 5.6 to 1.3, suggesting moderating demand growth, but more than a quarter of firms noted increases in new orders over November levels. The shipments index climbed to 19.6 in December, its highest reading in five months.

Perceptions of broader economic conditions remained positive in December. The general business activity index fell from 10.5 to 4.1. The company outlook index was nearly unchanged at 8.4.

Labor market indicators reflected unchanged workweeks but continued employment increases. The December employment index held steady at 9.2. The hours worked index dropped from 5.7 to 0, indicating no change in hours worked in December.

Expectations regarding future business conditions remained optimistic in December. The index of future general business activity fell from 18.3 to 13.9, while the index of future company outlook edged up. Indexes of future manufacturing activity moved down but remained positive.

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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