The Federal
Reserve Bank of Dallas reported on Monday its general business activity index
for manufacturing in Texas fell to -17.5 in July from an unrevised -15.1 in the previous month. The July reading
pointed to a contraction in factory activity for the 27th straight month.
According to
the survey’s details, the production index, a key gauge of state manufacturing
conditions, fell 2.0 points to -1.3 this month, returning into contraction territory after one-month growth. The new orders indicator plunged 11.5 points to -12.8, its lowest level
in eight months, pointing to a continued shrinkage in demand. The measure of the
growth rate of orders tumbled 12.3 points to -16.6, its lowest level in four
months. Meanwhile,
the employment measure jumped 10.0 points to 7.1, returning to expansion territory
after three straight months of contraction.
The raw materials prices index increased 1.6 points to
+23.1, the highest level in ten months, while the finished goods prices index declined 11.0 points to +3.4, the highest
level in five months.