The Federal
Reserve Bank of Dallas reported on Monday its general business activity index
for manufacturing in Texas slipped to -14.5 in April from an unrevised -14.4 in the previous month. This marked the lowest reading in three
months and pointed to a contraction in activity for the 24th consecutive month.
According to the survey’s details, the
production index, a key gauge of state manufacturing conditions, surged 8.9
points to +4.8 this month, returning into expansion territory after a
contraction in March. The new
orders indicator jumped 6.5 points to -5.3 but remained in negative territory for the
second straight month, indicative of worsening demand. The measure of the growth rate of
orders climbed 23.6 points to +3.8, turning positive for the first time in 24
months. Meanwhile, the employment measure dropped 1.6 points to -0.1, suggesting flat
employment. Elsewhere, the capacity utilization gauge soared 9.9 points to +4.2, returning into positive
territory after a three-month decrease. The shipments
index jumped 20.4 points to +5.0 returning into positive territory after a one-month
contraction. The
index of outlook uncertainty decreased 5.7 points to 17.3. On the price front,
the raw materials prices index declined 9.9 points to +11.2, the lowest level
in nine months, while the finished goods
prices index dropped 5.5 points to + 5.5.