By Micah Maidenberg

Manufacturing in Texas got better in February and executives said they were a bit more optimistic about their companies and the economy, according to a new report about the state's industrial sector from the Federal Reserve Bank of Dallas.

The production index rose to 16.4 points in the current month, compared with 10.5 last month, the latest Texas Manufacturing Outlook Survey shows.

In the survey, researchers at the Federal Reserve in Dallas ask Texas executives about a range of conditions in the industrial sector.

The index for general business activity for February rose to 1.2 from negative 0.2 in January, while the company outlook index moved to 3.6 from 1.9.

"Perceptions of broader business conditions were slightly more optimistic in February," according to the survey.

However, the new orders index declined to 8.4 for February from 17.6 last month and the index covering the growth rate of orders weakened to 3.6 from the 6.1 reading in January. The shipments index was roughly steady at 8.5.

The delivery time index increased to 2.6 in the latest survey and the finished goods inventories index dropped to negative 5.5.

The capital expenditures index fell to 6.9 from 9.1.

Labor market measures indicated flat employment but slightly longer work weeks in February, according to the survey.

The production index looking six months forward decreased to 35 from 38.9.

Indexes for production, capacity utilization, new orders and capital spending looking forward six months all moved lower.

Executives who responded to the survey predicted better results going forward, with the index covering company outlooks looking ahead six month rising to 24.1 in February from 15.6 in January, and general business activity rising to 18 from 7.6.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

February 24, 2020 11:12 ET (16:12 GMT)

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