The Federal
Reserve Bank of Dallas announced on Monday its general business activity index
for manufacturing in Texas increased to -15.1 in June from an unrevised -19.4 in the previous month. This marked the first rise in the index in
four months but pointed to a
contraction in activity for the 26th straight month.
According to
the survey’s details, the production index, a key gauge of state manufacturing
conditions, jumped 3.5 points to +0.7 this month, indicating little change in
output after a slight decline in the previous month. The new orders indicator increased 0.9 point
to -1.3 but
remained in negative territory for the fourth consecutive month, indicative of worsening
demand. The measure of the growth rate of orders climbed 5.8 points to -4.3 but stayed in decreasing territory for the second
month in a row. Elsewhere, the employment measure went up 2.4 points to -2.9, recording its third successive negative result. The capacity utilization gauge fell 2.8 points to -4.8,
slipping further into contraction territory. The
shipments index surged 5.8 points to +2.8, returning into positive territory
after one-month shrinkage. The index of outlook uncertainty fell 6.6 points to 9.8, its
lowest level since April 2021 (0.0). On the price front, the raw materials
prices index increased 1.1 points to +21.5, the highest
level in nine months, while the finished goods prices index soared 10.3
points to +14.4, the highest level in 16 months.