2012 News Releases

For immediate release: February 27, 2012

Dallas Fed: Texas Manufacturing Expansion Strengthens in February

Link to seasonally adjusted survey: http://www.dallasfed.org/microsites/research/surveys/tmos/2012/1202/tmos1202.cfm

DALLASTexas factory activity continued to increase in February, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.

Texas produces more than 9.5 percent of total manufactured goods in the United States, ranking second behind California in factory production.

The production index—a key measure of state manufacturing conditions—rose from 5.8 to 11.2, suggesting a pickup in the pace of growth.

Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.

Other measures of current manufacturing conditions also indicated expansion in February. The new orders index and shipments index were both positive for the second month in a row. Capacity utilization increased further in February.

Perceptions of broader economic conditions were more positive in February. The general business activity index rose to 17.8, its highest reading since November 2010. The company outlook index also reached a level not seen since 2010.

Labor market indicators reflected a sharp increase in hiring and longer workweeks. The employment index jumped to 25.2, its highest level since the beginning of 2006.

Prices and wages increased in February. About half of respondents anticipate further increases in raw materials prices over the next six months, while 30 percent expect higher finished goods prices.

Expectations regarding future business conditions remained optimistic in February.

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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Media contact:
Alexander Johnson
Phone: (214) 922-5288
e-mail: alexander.johnson@dal.frb.org

 

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