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Texas Fed Manufacturing Activity continued its robust expansion in July 2021
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Texas factory activity continued its robust expansion in July, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, was largely unchanged at 31.0, a reading well above average and indicative of strong output growth. Other measures of manufacturing activity also pointed to continued growth this month.
The new orders index came in at 26.8, unchanged from June and quadruple the series average of 6.5. The growth rate of orders index edged up to 25.8. The capacity utilization and shipments indexes held steady at highly elevated levels of 29.9 and 31.6, respectively.
Perceptions of broader business conditions continued to improve in July; the indexes eased slightly from June levels but remained well above average. The general business activity index fell four points to 27.3, and the company outlook index fell five points to 22.2. The outlook uncertainty index inched down to 14.6.
Labor market measures indicate continued growth. The employment index held steady at a highly elevated 23.7. Thirty-one percent of firms noted net hiring, while 8 percent noted net layoffs. The hours worked index also held steady at 24.2.
Prices and wages continued to increase in July. Price indexes eased off the all-time highs reached last month but remained strongly elevated, with the raw materials prices index coming in at 73.5 and the finished goods prices index coming in at 40.9. Similarly, the wages and benefits index ticked down to 46.0 from its historical high of 48.1 in June.
Expectations regarding future manufacturing activity remained optimistic in July. The future production index slipped eight points to 48.4, and the future general business activity index was unchanged at 37.1. Most other measures of future manufacturing activity declined but remained solidly in positive territory.
Posted: July 26, 2021 Monday 10:30 AM