Manufacturing Activity in Texas Quickens in September to a 2-Year High -- Dallas Fed
By Xavier Fontdegloria
Factory activity in Texas quickened its expansion pace in
September to a two-year high, data from the Federal Reserve Bank of
Dallas showed Monday.
The production index of the Texas Manufacturing Outlook Survey,
a key measure of state manufacturing conditions, came in at 22.3 in
September, up from 13.1 in August and indicative of a solid
expansion of output.
In the survey, researchers at the Federal Reserve in Dallas ask
Texas executives about a range of conditions in the industrial
sector. They are asked whether certain parameters such as output,
employment or orders increased, decreased or remained unchanged
over the previous month.
"Texas factory activity expanded in September for the fourth
month in a row following a record contraction due to the Covid-19
pandemic," the Dallas Fed said.
The index for general business activity for August also
increased, to 13.6 from 8.0 the previous month, signaling that
overall activity is expanding at a greater pace. Economists polled
by The Wall Street Journal had expected the reading to be unchanged
The new orders index advanced roughly five points to 14.7, while
the growth rate of orders index increased slightly to 13.2.
The capacity utilization index rose from to 17.5 from 10.9 the
prior month, and the shipments index decreased to 21.5 from
Labor market measures indicated stronger employment growth and a
continued increase in workweek length, the Dallas Fed said. The
employment index pushed up from 10.6 to 14.5, suggesting more
robust hiring, with 24% of firms noting net hiring and 9.5% noting
Expectations regarding future business conditions were more
positive than in August, the Federal Reserve Bank of Dallas
The future company outlook index increased to 32.5 in September
from August's 27.8, while the future general business activity
index ticked up to 28.0 from the 20.4 level registered the prior
"We have seen slight improvements that we hope are not
temporary," said one of respondents from the paper manufacturing
"We are busier than ever and will end with a record year," said
another one from the machinery manufacturing sector.
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
September 28, 2020 11:11 ET (15:11 GMT)
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