Research >> Economics
Texas Fed Manufacturing Activity increased at a moderate pace in April 2022
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Texas factory activity expanded at a moderate pace in April, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, ticked down two points to 10.8, a reading in line with the index’s average.
Other measures of manufacturing activity continued to signal solid expansion. The new orders index inched up to 12.1, while the growth rate of orders index held steady at 13.0. The capacity utilization index was unchanged at 14.3, and the shipments index pushed up five points to 11.8.
Perceptions of broader business conditions were a bit mixed in April. The general business activity index retreated eight points to a still-positive reading of 1.1 this month. The company outlook index slipped to -5.5, its lowest reading in two years. The outlook uncertainty index pushed up from 20.5 to 29.8.
Labor market measures indicated robust employment growth and longer workweeks. The employment index held at its highly elevated reading of 24.6. Thirty-four percent of firms noted net hiring, while 10 percent noted net layoffs. The hours worked index edged down to 11.3.
Prices and wages continued to increase strongly in April, though the indexes eased off their historical highs. The raw materials prices index fell 13 points to 61.5—its lowest reading in more than a year, though still well above its average of 27.7. The finished goods prices index moved down from 47.8 to 43.5. The wages and benefits index came in at 50.9, down slightly from its high last month of 55.2 but still markedly elevated from its average reading of 20.1.
Expectations regarding future manufacturing activity generally eased but remained positive. The future production index fell from 40.1 to 34.7, and the future general business activity index retreated six points to 1.8. Other measures of future manufacturing activity such as capital expenditures and employment showed mixed movements but remained solidly in positive territory.
Posted: April 25, 2022 Monday 10:30 AM