United States Dallas Fed Manufacturing Index

The Federal Reserve Bank of Dallas' general business activity index for manufacturing in Texas decreased to -14.4 in March 2024, down 3.1 points from -11.3 in the previous month. Meanwhile, the company outlook index slipped 7.7 points to -16.2, while the outlook uncertainty index moved up 12 points to a six-month high of 23.0. The production index, a key measure of state manufacturing conditions, fell 5.1 points to -4.1, indicating a slight decline in output month over month. Other measures of manufacturing activity also showed declines this month, with the new orders index plunging 17 points to -11.8, the capacity utilization index decreasing by 4.7 points to -5.7, and the shipments index dropping 15.5 points to -15.4. Finally, labor market measures suggested slower job growth and shorter workweeks in March.

The Federal Reserve Bank of Dallas’s general business activity index for manufacturing in Texas increased to -11.3 in February 2024 from an eight-month low of -27.4 in the prior month. The production index, a key measure of state manufacturing conditions, rebounded 16 points to 1.0, indicative of stabilization. The new orders index, a key measure of demand, climbed 18 points in February to 5.2, its first positive reading since May 2022. The capacity utilization and shipments indexes both posted double-digit increases to push up from contractionary territory into neutral territory. The employment index rebounded after two negative readings, rising 16 points to 5.9. On the price front, wage and input costs continued to increase this month, while selling prices remained flat. Finally, the future production index held steady at 22.4, and the future general business activity index shot up 17 points to 6.2, returning to positive territory after six months of negative readings.

The Federal Reserve Bank of Dallas’s general business activity index for manufacturing in Texas slipped 17 points to -27.4 in January 2024, the lowest in eight months, suggesting a deeper contraction during the month. The production index, a key measure of state manufacturing conditions, dropped 17 points to -15.4, marking its lowest reading since mid-2020. The new orders index ticked down from -10.1 to -12.5 in January, while the growth rate of orders index remained negative but pushed up eight points to -14.4. The capacity utilization index dropped to a multiyear low of -14.9, and the shipments index slipped 11 points to -16.6. The employment index moved down seven points to -9.7, its lowest reading since mid-2020. On the price front, wage and input costs continued to increase this month, while selling prices were flat. Looking forward, the future production index moved up 10 points to 21.7, and most other indexes pushed further positive as well.