Texas Factory Activity Declined in November for Seventh Straight Month -- Dallas Fed
November 28 2022 - 11:32AM
Dow Jones News
By Maria Martinez
Texas manufacturing activity fell in November for the seventh
consecutive month, adding to evidence of a slowdown in the factory
sector, data from the Federal Reserve Bank of Dallas showed
Monday.
The index for general business activity of the Texas
Manufacturing Outlook Survey, which assesses business conditions of
the state's factory sector, rose to minus 14.4 in November from
minus 19.4 in October. Despite the improvement, the index points to
declining factory activity over the month as the reading came in
below the no-change threshold of zero.
The production index--a key measure of state manufacturing
conditions--decreased to 0.8 from 6.0 the previous month, signaling
little change in output from October.
The new orders index fell to minus 20.9 in November, its sixth
consecutive negative reading, suggesting demand continued to
weaken. The growth rate of orders index fell to minus 19.9, also
signaling declining orders.
The employment index fell to 5.9, pointing to slower employment
growth. The hours worked index remained near zero, suggesting no
change, the Dallas Fed said.
"Supply-chain disruptions and delayed project schedules are
negatively impacting our output and utilization," said one
respondent from the fabricated metal product manufacturing sector.
The delivery times index fell to minus 2.8 and the unfilled orders
index fell to minus 4.6.
Inflation pressures eased, the report showed. The raw materials
prices index fell to 22.6, and the finished goods prices index fell
to 13.9.
Manufacturing firms in Texas had mixed opinion about their
short-term outlook. The future production index remained positive,
rising to 8.9. However, the future general business activity index
remained negative, though it ticked up to minus 17.5. Most other
measures of future manufacturing activity were positive and saw
increases in index values this month, the Dallas Fed said.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
November 28, 2022 11:17 ET (16:17 GMT)
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