- Prior month -27.4
- Dallas Fed manufacturing index -11.3 in February
Details from the Dallas Fed. Texas factory activity showed signs of stabilization in February, recovering from contraction in January according to the Texas Manufacturing Outlook Survey.:
- Production index, which measures state manufacturing conditions, rose 16 points to 1.0, indicating flat output month over month.
- New orders index, a measure of demand, increased 18 points to 5.2, marking its first positive reading since May 2022.
- Capacity utilization and shipments indexes both saw double-digit increases, moving from contractionary to neutral territory.
Despite the stabilization in manufacturing activity, perceptions of broader business conditions continued to deteriorate in February, albeit at a slower pace. The general business activity index improved to -11.3 from -27.4, and the company outlook index rose to -8.5 from -18.2.
- The outlook uncertainty index decreased by 10 points to 11.0, suggesting less uncertainty.
- Labor market measures indicated employment growth but shorter workweeks. The employment index rose 16 points to 5.9, with 18% of firms reporting net hiring.
- Wage and input costs rose, while selling prices remained unchanged. The wages and benefits index was stable at 20.1, and the raw materials prices index decreased to 15.4, indicating modest cost growth.
- Expectations for future manufacturing activity improved, with the future production index steady at 22.4 and the future general business activity index rising 17 points to 6.2, returning to positive territory after six months of negative readings.
Comments from participants in the survey:
- The economy is hurting the trucking business. The uncertainty is bothering people.
- We are once again increasing our inventory to meet expected demand. Quotes are increasing as we meet and talk to our customers. However, they are worried about the political environment and the elections, but that doesn’t mean that they are going to change their purchasing decisions.
- There’s an odd chill in the air that we can’t determine if it’s election related, general economic malaise or fear of pending doom. It’s very strange. Things are status quo with a bit of negative undertone, which is somewhat disturbing for business owners.
- Please lower interest rates. Capital equipment and manufacturing indexes are at dangerous levels. Help the nearshore movement.
- There have been several private funding groups buying up companies similar to ours. I don’t know if we can make it competitively in the market.
- Many of our customers have long-term contracts. We expect the amount of contracts to increase for our remanufacturing capacity.