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    Home ยป Factory Activity in Texas Shows Signs of Improvement
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    Factory Activity in Texas Shows Signs of Improvement

    August 1, 20231 Min Read
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    Factory activity in Texas continued to decline in July, although at a slower pace than the previous month. According to the latest Texas Manufacturing Outlook Survey conducted by the Dallas Fed, the index for general business activity rose from minus 23.2 in June to minus 20.0 in July.

    While the production index slipped to minus 4.8, indicating a contraction in output, other indicators showed more positive signs. New orders declined, but both capacity utilization and shipments improved, albeit remaining in negative territory.

    The Texas labor market tightened in July, with employment rising by eight points to 10.0, which is above its long-term average. Approximately a quarter of firms reported net hiring, and hours worked swung positive after three months of decline.

    However, wage growth moderated during this period, and raw-material prices saw an increase. Despite these challenges, the outlook remained largely positive. The future production index slightly decreased but remained positive, while the future general business activity index turned positive.

    Overall, while factory activity in Texas still faces some challenges, there are signs of improvement. The data suggests a cautious optimism for the state’s industrial sector.

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