Research >> Economics
Texas Fed Manufacturing Activity abated in August 2022
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Growth in Texas factory activity abated in August, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, ticked down to 1.2, a reading suggestive of very little change in output.
Other measures of manufacturing activity signaled slower growth or declines this month. The new orders index was negative for a third month in a row—suggesting a continued decrease in demand—though it moved up from -9.2 to -4.4. The growth rate of orders index also remained negative but moved down from -12.0 to -14.7. The capacity utilization index fell slightly to -0.6, and the shipments index was largely unchanged at 3.4.
Perceptions of broader business conditions continued to worsen in August. The general business activity index remained negative but shot up 10 points to -12.9. The company outlook index posted a sixth consecutive negative reading and edged up to -7.6. The outlook uncertainty index remained elevated but retreated from 33.7 to 24.4.
Labor market measures continued to indicate robust employment growth and longer workweeks. The employment index ticked down two points to 15.6, a reading significantly above its series average of 7.8. Twenty-seven percent of firms noted net hiring, while 12 percent noted net layoffs. The hours worked index pushed up five points to 14.4.
Prices and wages continued to increase, though price pressures moderated. The raw materials prices index fell four points to 34.4, a reading still above its average of 28.1 but far below its high of 83.3 last November. The finished goods prices index also moved down, from 29.3 to 26.8. The wages and benefits index, however, pushed higher in August to 45.8.
Expectations regarding future manufacturing activity were mixed in August. While the future production index pushed further into positive territory, coming in at 23.9, the future general business activity index remained negative, though it rose nine points to -8.8. Other measures of future manufacturing activity, like capacity utilization and new orders, pushed further positive in August
Posted: August 29, 2022 Monday 10:30 AM