Texas Manufacturing Activity Increased in November
TEXAS – According to data from the Federal Reserve Bank of Dallas (Dallas Fed), Texas manufacturing activity increased at a faster pace during the month of November.
According to the manufacturing index, it rose nine points to 27.4, a reading well above average and indicative of solid growth in the industrial sector.
Other measures of manufacturing activity also indicated a further pickup in growth. The new orders index came in at 19.6, up five points from October and well above average (6.6).
On the other hand, the order growth index rose three points to 16.8. The shipments index jumped 11 points to 24.3, its highest reading since July, and the capacity utilization index rose from 20.1 to 26.4.
Dallas Fed reported that perceptions of overall business conditions were mixed in November. The overall business activity index remained positive, indicating an improvement in activity from October, although it declined three points to 11.8.
In addition, the business outlook index came in at 1.3, with a reading near zero indicating little change in outlook from October. Uncertainty continued to rise, the index for this item remained at 27.7.
According to the Dallas Fed economic report, labor market measures indicated solid job growth and longer workweeks. The employment index rose to 28.5, a seven-month high. Thirty-three percent of firms posted net hires, while 5 percent posted net layoffs.
The hours-worked index also remained elevated and was virtually flat at 19.6.
Meanwhile, prices and wages continued to rise strongly in November. Amid widespread supply chain disruptions, the raw materials price index rose six points to 82.1, reaching a new high.
The finished goods price index moved away from last month’s high, falling eight points to 42.2, but surpassing its historical average of 7.6. The wages and benefits index moved closer to its series high, rising from 44.1 to 47.6 points.
Future projections for manufacturing activity were also positive by rising as much as five points to 51.7, while business activity rose 14 points to 28.6.