For immediate release: December 29, 2008
Dallas Fed Survey: Texas Manufacturing Activity Declines Further in December
DALLAS—Texas factory activity deteriorated further in December, according to the Federal Reserve Bank of Dallas' Texas Manufacturing Outlook Survey.
The December survey can be found at: http://dallasfed.org/data/outlook/index.html
Texas produces more than 8 percent of the total manufactured goods in the United States, ranking second behind California in factory production.
Nearly all indexes of current activity remained negative, and several dropped to record lows. Indexes for production, growth rate of orders and volume of shipments retreated further into negative territory, reflecting sluggish demand.
The index for level of business activity remained negative, and more than 60 percent of the respondents reported worsening conditions. The company outlook index dropped to its lowest level since the survey's inception in June 2004.
Assessments of future activity remained generally pessimistic, suggesting that manufacturers expected their operations to contract further.
Indexes for future production, capacity utilization, volume of new orders and volume of shipments improved slightly.
Cost pressures continued to moderate. Both the prices paid for raw materials and prices received for finished goods indexes fell for the sixth consecutive month.
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state's factory activity.
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