Research >> Economics
Texas Fed Manufacturing Activity was flat in April 2023
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Texas factory activity was flat in April after growing modestly in March, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, inched down from 2.5 to 0.9, with the near-zero reading suggestive of no change in output from last month.
Other measures of manufacturing activity showed mixed signals in April. The new orders index was negative for an 11th month in a row but moved up five points to -9.6. The growth rate of orders index also remained negative but rose from -15.2 to -11.1. The capacity utilization index edged up to 3.9, while the shipments index pushed up from -10.5 to -2.8.
Perceptions of broader business conditions worsened notably in April. The general business activity index dropped eight points to -23.4, its lowest reading in nine months. The company outlook index remained negative, ticking down two points to -15.6. The outlook uncertainty index pushed up to 24.7, elevated relative to its average reading of 16.9.
Labor market measures suggest moderate employment growth but a slight decline in work hours. The employment index ticked down two points to 8.0, in line with its average reading. Twenty percent of firms noted net hiring, while 12 percent noted net layoffs. The hours worked index dipped into negative territory, coming in at -2.7.
Prices and wages continued to increase in April. The raw materials prices index was largely unchanged at 19.5, a reading indicative of below-average increases in input costs. The finished goods prices index was also little changed, at 8.4. The wages and benefits index moved up seven points to 37.6, a stubbornly elevated reading relative to its average of 21.0.
Expectations regarding future manufacturing activity were mixed in April. The future production index plummeted from 13.5 to 3.0, with the low reading signaling little output growth over the next six months. The future general business activity index pushed further negative, from -11.2 to -16.6. Most other measures of future manufacturing activity remained positive but showed mixed movements this month.
Posted: April 24, 2023 Monday 10:30 AM