Research >> Economics
Texas Fed Manufacturing Activity Remains Robust, Outlooks Improve Further in April
|
Texas factory activity expanded at solid clip in April, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell 14 points to 34.0, a reading still well above average and indicative of robust output growth. Other measures of manufacturing activity also pointed to strong growth this month, with demand, labor, price and wage indexes reaching all-time highs.
The new orders index rose eight points to 38.5, and the growth rate of orders index climbed 10 points to 32.3. Both readings were the highest in the survey’s 17-year history. The capacity utilization index remained high, slipping from 46.1 to 34.6. The shipments index held steady at 32.6.
Perceptions of broader business conditions improved markedly in April, and uncertainty subsided. The general business activity index came in at 37.3, up eight points from its March reading. The company outlook index edged up three points to 29.1, a reading four times higher than the series average. The outlook uncertainty index moved down to zero, indicating that uncertainty is no longer on the rise.
Labor market measures indicated robust growth in employment and work hours. The employment index came in at 31.3, up notably from 18.8 and its highest reading since the survey began in 2004. Thirty-five percent of firms noted net hiring, while 3 percent noted net layoffs. The hours worked index held steady at 23.7.
Price and wage pressures accelerated further in April. The raw materials prices index rose from 66.0 to 71.4, near an all-time high. The finished goods prices index did reach an all-time high, climbing seven points to 39.1. The wages and benefits index also posted its highest reading on record, increasing nine points to 37.1.
Expectations regarding future manufacturing activity pushed further positive in April. The future production index moved up to 47.2, and the future general business activity index inched up to 36.6. Most other measures of future manufacturing activity also rose, and all remained solidly in positive territory.
Posted: April 26, 2021 Monday 10:30 AM