The Federal
Reserve Bank of Dallas reported on Monday its general business activity index
for manufacturing in Texas increased to -9.0 in September from an unrevised -9.7 in the previous month. This marked the highest reading since January 2023 (-8.5) and
was the 29th consecutive negative reading.
Economists had expected
the indicator to improve to -4.5.
According to
the survey’s details, the production index, a key gauge of state manufacturing
conditions, fell 4.8 points to -3.2 this month, returning
into contraction territory after one-month growth. The new orders indicator dropped 1.0 point
to -5.2, remaining in negative territory for the seventh
consecutive month, indicative of worsening demand. The measure of the growth rate of
orders declined 3.5 points to -8.6, staying in negative territory for the fifth month in a row. The
shipments index plunged 7.8 points to -7.0, retreating back into negative territory. Meanwhile, the employment
measure surged 3.6 points to +2.9, suggesting some employment growth.
On the price front, the
raw materials prices index declined 10.0 points to +18.2, the highest level
in five months, while the finished goods
prices index slipped 0.1 point to +8.4.