Dallas Fed Manufacturing Activity Bounces Back

Texas manufacturing activity bounced back but not as much expected in July, with the general business activity index rebounding by 5.8 points from June's three-year low though remaining in contraction at minus 6.3. The production index also improved slightly, rising 0.4 points to 9.3, indicating factory output growth at roughly the same pace as in June.

The survey's demand indicators were mixed but mostly stronger, however. Showing acceleration, were new orders, which rose 1.8 points to 5.5 in an extension of June's improvement, and moving out of contraction the growth rate of orders rose 8 points to 2.7. Shipments rebounded strongly by 8.5 points to 10.2, and capacity utilization rose to 1.6 points to 11.2. But unfilled orders fell 6.2 points to minus 2.8 and delivery times fell 4.3 points to minus 4.8.