Economy
Dallas Fed Shows Increase in Manufacturing Activity
September 26, 2016 11:05 am
Last Updated: January 13, 2020 3:09 am
With oil prices still under $50 per barrel, many manufacturers in Texas and targeting the Texas market have felt a pinch for more than a year now. According to the Federal Reserve Bank of Dallas, factory activity in Texas increased markedly in September. The regional Fed office released its Texas Manufacturing Outlook Survey on Monday.
Investors and economists alike should understand that this is a survey of local businesses. The production index rose by a sharp 12 points to 16.7. According to the Fed, this means that output picked up at a notably faster pace this month.
Some other measures of current manufacturing activity also reflected faster expansion. Still, demand indicators have dipped back into negative territory.
These readings represent the highest for these indexes in roughly two years. Perceptions of broader business conditions were mixed. Labor market measures indicated slight employment gains and longer workweek length. Price pressures were mixed, and wages continued to rise. Expectations regarding future business conditions improved again in September. The data and index readings were shown as follows on these topics:
The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly as a semi-live assessment of the state’s factory activity. Data were collected between September 13 to September 21, with 108 manufacturing firms in Texas responding to the survey. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.
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