[ad_1]
July 25, 2022
Modest Growth in Texas Manufacturing Activity Continues
What’s New This Month
For this month’s survey, Texas business executives were asked supplemental questions on labor market conditions. Results for these questions from the Texas Manufacturing Outlook Survey, Texas Service Sector Outlook Survey and Texas Retail Outlook Survey have been released together. Read the special questions results.
Growth in Texas factory activity continued at a modest pace in July, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, was largely unchanged at 3.8, a reading well below average but still indicative of growth.
Other measures of manufacturing activity painted a mixed picture again this month. The new orders index remained negative at -9.2, down from -7.3 in June, suggesting a further decrease in demand. The growth rate of orders index also remained negative but edged up to -12.0. The capacity utilization index was unchanged at 3.5, and the shipments index ticked up to 4.3.
Perceptions of broader business conditions worsened in July. The general business activity index declined five points to -22.6. The company outlook index posted a fifth consecutive negative reading but moved up from -20.2 to -10.8. The outlook uncertainty index came off its two-year high of 43.7, falling to 33.7.
Labor market measures continued to indicate robust employment growth and longer workweeks. The employment index moved up three points to 17.9, a reading significantly above its series average of 7.7. Twenty-eight percent of firms noted net hiring, while 10 percent noted net layoffs. The hours worked index also remained above average but edged down from 11.8 to 9.5.
Prices and wages continued to increase but at a more moderate pace. The raw materials prices index fell 19 points to 38.4, a reading still above its average of 28.0 but far below its high of 83.3 last November. The finished goods prices index also moved down, from 33.8 to 29.3, remaining elevated but well below the highs seen last fall. The wages and benefits index came in at 38.1, down 12 points from June but still markedly higher than its 20.4 average.
Expectations regarding future manufacturing activity were mixed. The future production index climbed 10 points to 13.6. The future general business activity index rose eight points but remained negative at -17.7, suggesting that more manufacturers expect worsened activity six months from now than improved. Other measures of future manufacturing activity, like capacity utilization and new orders, pushed further positive in July.
Next release: Monday, August 29
|
Data were collected July 1220, and 87 Texas manufacturers responded to the survey. The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month. Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase. When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior month. If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior month. An index will be zero when the number of firms reporting an increase is equal to the number of firms reporting a decrease. Data have been adjusted seasonally as necessary. |
|
Sources 2/ https://www.dallasfed.org/research/surveys/tmos/2022/2207 The mention sources can contact us to remove/changing this article |
[ad_2]