Research >> Economics
Texas Fed Manufacturing Activity picked up in September 2022
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Growth in Texas factory activity picked up in September, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose eight points to 9.3, a reading suggestive of stronger output growth.
Other measures of manufacturing activity showed mixed signals this month. The new orders index ticked down to -6.4―the fourth month in a row in negative territory—suggesting a continued decrease in demand. The growth rate of orders index also remained negative but moved up 13 points to -1.7. The capacity utilization index jumped to 13.4 after posting a near-zero reading in August, and the shipments index moved up to 7.1.
Perceptions of broader business conditions continued to worsen in September. The general business activity index pushed further negative, from -12.9 to -17.2. The company outlook index moved down three points to -10.7. The outlook uncertainty index remained elevated and inched up to 27.2.
Labor market measures continued to indicate robust employment growth and longer workweeks. The employment index was largely unchanged at 15.0, a reading significantly above its series average of 7.8. Twenty-four percent of firms noted net hiring, while 9 percent noted net layoffs. The hours worked index remained slightly elevated but moved down six points to 8.0.
Prices and wages continued to increase at an elevated pace. The raw materials prices index ticked up from 34.4 to 37.1, ending a three-month trend of easing price pressures. The finished goods prices index, however, continued its downward trend and fell nine points to 18.1, a reading still well above average. The wages and benefits index also fell nine points, coming in at 36.6.
Expectations regarding future manufacturing activity were mixed in September. While the future production index pushed further into positive territory at 28.3, the future general business activity index remained negative and dropped 14 points to -22.4. Other measures of future manufacturing activity, like new orders and employment, pushed further positive in September.
Posted: September 26, 2022 Monday 10:30 AM