Texas Manufacturing Activity Weakens in March, Says Dallas Fed Survey
For immediate release: March 30, 2015
DALLAS—Texas factory activity declined in March, 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—fell to –5.2, posting its first negative reading in nearly two years.
Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.
Other measures of current manufacturing activity reflected a weakening in March. The new orders index pushed further into negative territory. The shipments and capacity utilization indexes also slipped to more negative readings.
Perceptions of broader economic conditions were rather pessimistic for a third month in a row. The general business activity index declined 6 points to –17.4 in March. The company outlook index was largely unchanged at –4.
Expectations regarding future business conditions remained fairly weak in March. The indexes of future general business activity and future company outlook moved only slightly and remain well below the levels seen throughout 2014. Indexes of future manufacturing activity, however, improved markedly in March.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.
Federal Reserve Bank of Dallas