Texas manufacturing activity grew at a robust pace in May despite some weaknesses.
- The production index, a measure of state manufacturing conditions, increased from 10.8 to 18.8, indicating an acceleration in growth from April.
- Other measures of factory activity reported mixed results. The capacity utilization and shipments indexes increased to 19.8 and 13.1, accordingly.
- Meanwhile, the new orders index dropped nine points to 3.2, and the growth rate of the orders index plunged 18 points and entered negative territory at -5.3.
- Perceptions of the wider business conditions deteriorated in May. The general business activity fell eight points to -7.3, plunging into negative territory for the first time since July 2020.
Outlook regarding future manufacturing was mixed but less optimistic than in April.
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Source: Federal Reserve Bank of Dallas