The Federal
Reserve Bank of Dallas announced on Monday its general business activity index
for manufacturing in Texas declined to -16.3 in March from an unrevised -8.3 in the previous month. This
was the lowest reading since July
2024 (-16.9).
Economists had predicted
the indicator to drop to -12.0.
According to
the survey’s details, the production index, a key gauge of state manufacturing
conditions, soared 15.1 points to 6.0 this month, returning into expansion territory after a one-month shrinkage. The new orders
indicator increased 3.4 points to -0.1, suggesting that demand in March was
similar to February. The shipments index went up 0.5
point to +6.1, remaining positive for the fourth month in a row. Meanwhile, the measure of the growth rate of orders slipped
0.6 point to -8.1, its lowest
level in four months. The employment gauge plunged
3.9 points to -4.6, dropping further into negative territory and hitting the
lowest level since October 2024 (-4.8).
On the price
front, the raw materials prices index climbed 2.7
points to +37.7, the highest level since July 2022 (+38.1), while the finished goods prices index decreased 1.5 points to +6.3, indicating that
input cost pressures edged higher in March and selling price pressures remained
stable.