Research >> Economics
Texas Manufacturing Falls, but Outlook Improves Further
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Texas factory activity declined in October, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index—a key indicator of current manufacturing activity—edged further into negative territory, suggesting output in October contracted after remaining stable in September.
Current activity indexes for new orders and shipments turned negative, erasing gains seen last month. The company outlook and business activity indexes remained slightly negative, but a growing majority of executives reported no changes from the prior month and only a fifth noted worsening outlooks and decreased business activity.
The employment index remained negative as more respondents are trimming payrolls than hiring. However, nearly 70 percent of manufacturers reported no changes in staff levels or hours worked.
Price pressures remained tame, with about three-fourths of respondents reporting no change from the previous month in input and selling prices. The raw materials price index rose as firms reporting higher input prices continued to outpace those seeing declines by a significant margin. Some companies continued to report net declines in prices for their manufactured goods, keeping the finished goods price index negative.
Posted: October 26, 2009 Monday 10:00 AM