By Dave Sebastian 
 

Manufacturing in Texas grew at a slightly faster pace in June compared with May, according to the Texas Manufacturing Outlook Survey.

The June production index in the survey rose to 8.9, up from 6.3 in May. The Federal Reserve Bank of Dallas conducts the survey, asking Texas business executives about a range of business conditions related to the industrial sector. Positive readings in the survey usually indicate factory activity expansion, while negative readings indicate contraction.

The index for general business activity decreased to negative 12.1 from negative 5.3 in May. The company outlook index dropped to negative 5.5 from negative 1.7.

The new orders index of 3.7 for June was up from 2.4 in May, but the reading is below average, the Dallas Fed said. The growth rate of orders index fell to negative 6.7 from 1.1. The shipments index fell to a two-year low of 1.7 from 7.6.

The capital expenditures index fell to a two-year low of 6.9 from 18.3.

The delivery time index fell 6.8 points to negative 0.3 in June, and the finished goods inventories index increased 0.1 points to negative 6.1.

The production index looking six months forward fell to 25.2 from 36.5. The capital expenditures index looking six months forward was down to 22.5 from 22.8, and the capacity utilization index looking six months forward declined to 25.9 from 34.8.

The prices paid for raw materials index looking six months ahead slid to 21.5 from 28.9.

Survey respondents said tariffs have increased prices of raw materials in sectors like electronics and nonmetallic mineral product manufacturing.

Write to dave.sebastian@wsj.com

(END) Dow Jones Newswires

June 24, 2019 11:19 ET (15:19 GMT)

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