The Federal
Reserve Bank of Dallas revealed on Monday its general business activity index
for manufacturing in Texas soared to +14.1 in January 2025 from an upwardly revised
+4.5 (from +3.4) in the previous month. The January reading
pointed to the strongest expansion in Texas factory activity since October 2021
(+15.3).
According to
the survey’s details, the production index, a key gauge of state manufacturing
conditions, surged 9.6 points to +12.0 this month, pointing to the strongest
increase in output in three months. The new orders
indicator jumped 6.2 points to +7.7, its highest level since April 2022 (10.1).
The measure of the growth rate of orders increased 4.1
points to +1.0, turning positive for the first time in 9 months. The shipments index jumped 5.9 points
to +5.0, returning into positive territory after two months of contraction. The employment measure climbed
1.8 points to +2.2, suggesting some employment growth. On the price front, the
raw materials prices index surged 5.4 points to +17.5, while the finished goods prices index soared 8.8
points to +6.2, indicating upward pressure on prices increased this month.