Research >> Economics
Texas Fed Manufacturing Activity continued to increase in September 2021
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Texas factory activity continued to increase in September, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose three points to 24.2. The reading was well above average and indicative of solid output growth.
Movement was mixed for other measures of manufacturing activity. While the shipments and capacity utilization indexes edged up to 18.7 and 24.5, respectively, the survey’s demand indexes slipped. The new orders index came in at 9.5, down from 15.6 but still slightly above the series average of 6.5. The growth rate of orders index fell eight points to 2.5.
Perceptions of broader business conditions were mixed in September. While both the company outlook and general business activity indexes moved down from their August readings, the company outlook index slipped into negative territory at -2.8, signaling a slight worsening of outlooks this month. The general business activity index, however, remained positive at 4.6. The outlook uncertainty index edged up to 23.3.
Labor market measures indicated faster employment growth and longer workweeks. The employment index pushed up further to 26.3. Thirty-six percent of firms noted net hiring, while 9 percent noted net layoffs. The hours worked index edged down but remained highly elevated at 20.4.
Prices and wages continued to increase strongly in September. The price indexes climbed further, with the raw materials prices index at 80.4 and the finished goods prices index at 44.0, an all-time high. The wages and benefits index held steady at a highly elevated reading of 42.7.
Expectations regarding future manufacturing activity were slightly less positive in September. The future production index edged down to 41.8 but remained elevated, while the future general business activity index slipped four points to 11.5, a reading slightly below average. Other measures of future manufacturing activity showed mixed movements but remained solidly in positive territory.
Posted: September 27, 2021 Monday 10:30 AM