Texas Factory Production Accelerates in November -- Dallas Fed
By Maria Martinez
Growth in Texas factory output increased at a faster pace in
November compared with the previous month, despite supply-chain
bottlenecks, according to data from the Federal Reserve Bank of
Dallas released Monday.
The production index of the Texas Manufacturing Outlook Survey,
a key measure of state manufacturing conditions, rose to 27.4 in
November from 18.3 in October. The reading signals solid output
growth, the Dallas Fed said.
The index for general business activity--which assesses broader
business conditions in the manufacturing sector--fell slightly to
11.8 from 14.6 the prior month. The indicator came in below
economists' forecasts, who polled by The Wall Street Journal
expected it to be at 18.5. Any level above zero signals growth.
The industrial sector continues to grow across the U.S. amid
strong demand despite that supply-chain bottlenecks and labor
shortages are constraining output, surveys across the country
Other measures of manufacturing activity also indicated notable
growth, the Dallas Fed said. The survey's demand indexes rose,
suggesting demand for goods remains strong. The new orders index
increased to 19.6, and the growth rate of orders index climbed to
16.8. The shipments index posted its highest reading since July and
the capacity utilization index moved up to 26.4 from 20.1, the data
Supply-chain disruptions were widespread, pushing up prices,
according to the survey. The raw materials prices index hit a new
series high and the finished goods prices index eased off its high
last month, falling to 42.2 but still far exceeding its historical
average of 7.6.
"Higher-than-historical raw materials costs, continued
supply-chain shortages, and the continued war on talent with
limited labor availability have impacted near-term to 12-month
business forecasts negatively," a respondent from the chemical
manufacturing sector said.
Labor market measures indicated robust employment growth and
longer workweeks. The employment index increased to 28.5, a
seven-month high, and the hours worked index was largely steady at
19.6, at an elevated level.
Expectations regarding future manufacturing activity improved in
November. The future general business activity index jumped to
28.6, and the future production index increased to 51.7, the Dallas
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires
November 29, 2021 11:10 ET (16:10 GMT)
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