The Federal
Reserve Bank of Dallas reported on Monday its general business activity index
for manufacturing in Texas increased to -2.7 in November from an unrevised -3.0 in the previous month. This was the 31st consecutive
negative reading, which, however, represented the weakest decrease in the
sequence.
Economists had expected
the indicator to rise to -2.4.
According to
the survey’s details, the production index, a key gauge of state manufacturing
conditions, tumbled 15.5 points to -0.9 this month, pointing to a
slight contraction in output from November. The new orders
indicator plunged 8.2 points to -11.9, its lowest level in four months, pointing to a continued shrinkage in demand. The
measure of the growth rate of orders slipped 0.8 point to -12.5, its
lowest level since July. The shipments index declined 7.4 points to -5.9, retreating
back into negative territory. Meanwhile, the employment measure surged 10.0 points to +4.9, returning into expansion
territory after a decrease in the previous month.
On the price front, the
raw materials prices index jumped 12.2 points to +28.5, the highest level
since October 2022, while the finished goods
prices index increased 1.4 points to +8.8, the highest level since June.