Texas manufacturing activity flat in September, says Dallas Fed survey

Perceptions of broader Texas business conditions remain weak in September, survey finds

For immediate release: September 28, 2015

DALLAS—Texas factory activity was essentially flat in September, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.

The production index — a key measure of state manufacturing conditions — remained near zero at 0.9, suggesting output held steady for a second month in a row after several months of declines.

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

The new orders and growth rate of orders indexes both remained negative but rose. The shipments index pushed to around zero from negative territory, and the capacity utilization index posted its first positive reading in eight months.

Perceptions of broader business conditions remained weak in September. The general business activity index, which has been negative all year, rose 6 points to –9.5. The company outlook index plunged to –10.3 in August but recovered somewhat this month, climbing to –5.2.

Labor market indicators reflected employment declines and shorter workweeks. The September employment index posted a fifth consecutive negative reading, and the hours worked index turned markedly negative.

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Media contact:
Alexander Johnson
Federal Reserve Bank of Dallas
Phone: (214) 922-5288
Email: alexander.johnson@dal.frb.org