Texas factory activity rose at a higher pace than anticipated in December.
- The production index, a key measure of the state manufacturing conditions, remained fairly the same at 26.7, a reading signaling solid output growth.
- The new orders index fell slightly from 19.6 to 18.1, way above the average of 6.7. The growth rate of orders index decreased but remained higher at 13.4.
- The shipments index slowed down slightly from 24.3 to 19.1, while the capacity utilization index increased up from 26.4 to 27.8.
- The company forecast index increased from 1.3 to 8.6, its highest level since August. Uncertainty relating to outlooks continued to increase, even though the index slowed down to 19.2.
- Labor market measures signaled rapid employment growth and longer workweeks. The employment index increased to 30.9, an eight-month record high.
35% of firms reported net hiring while 4% reported net layoffs. Hours worked remained high and were largely the same at 19.7.
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Source: Federal Reserve Bank of Dallas.