Federal Reserve Bank of Dallas
04/29/2024 | Press release | Distributed by Public on 04/29/2024 08:46
Texas Manufactoring Outlook Survey
April 29, 2024
Texas manufacturing sector indicators mixed in April
What's new this month
For this month's survey, Texas business executives were asked supplemental questions on artificial intelligence (AI). Results for these questions from the Texas Manufacturing Outlook Survey, Texas Service Sector Outlook Survey and Texas Retail Outlook Survey have been released together. Read the special questions results.
Texas factory output strengthened slightly in April, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose from -4.1 to 4.8.
Other measures of manufacturing activity were mixed this month. The new orders index remained negative, though it pushed up seven points to -5.3. The capacity utilization and shipments indexes turned positive this month, coming in at 4.2 and 5.0, respectively.
Perceptions of broader business conditions continued to worsen in April. The general business activity index held steady at -14.5-with the negative reading signaling worsening activity-and the company outlook index remained negative but moved up 10 points to -6.3. The outlook uncertainty index retreated six points to 17.3.
Labor market measures suggested flat employment and slightly shorter workweeks this month. The employment index edged down to a near-zero reading, suggesting no change in head counts. Fifteen percent of firms noted net hiring, the same as the share noting net layoffs. The hours worked index remained negative for a seventh month in a row but moved up six points to -2.3.
Wage pressures picked up this month, while price pressures retreated. The wages and benefits index pushed up 10 points to 30.6, a seven-month high and indicative of stronger-than-usual growth in compensation. The raw materials prices index retreated further below average, falling 10 points to 11.2. The finished goods prices index also fell, from 11.0 to 5.5.
Expectations regarding future manufacturing activity improved in April. The future production index inched up to 34.8, and the future general business activity index rose from 1.3 to 7.9. Other measures of future manufacturing activity also pushed further positive this month.
Next release: Tuesday, May 28
Data were collected April 16-24, and 87 out of the 127 Texas manufacturers surveyed submitted a response. The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state's factory activity. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.
Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase. When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior month. If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior month. An index will be zero when the number of firms reporting an increase is equal to the number of firms reporting a decrease. Data have been seasonally adjusted as necessary.