Manufacturing Activity in Texas Rises

Factory activity in Texas picked up in January, suggesting a stronger output growth than last month, according to a new report about the state's industrial sector from the Federal Reserve Bank of Dallas.

The production index increased 6.9 points to 10.5 in the current month, the latest Texas 

Manufacturing Outlook Survey shows. The Dallas Fed conducts the monthly survey, which asks Texas business executives about conditions in the industrial sector. 

The index for general business activity for January was negative 0.2 as some survey respondents reported no change this month and others reported improved and worsened activity. The index's reading in December was negative 3.2. 

The company outlook index ticked up to 1.9 from 1.3 in December. 

The new orders index rose 16 points to 17.6 in January, and the growth rate of orders was 6.1, compared with negative 5 in December. The shipments index grew to 8.6 from 3. 

The delivery time index was negative 3 in the latest survey, compared with negative 7 last month. The finished goods inventories index was negative 3.5, compared with negative 12.3 in December.

The capital expenditures index fell to 9.1 from 15.3 in December. 

The production index looking six months forward ticked up to 38.9 from 36.9 in December. The capital expenditures index looking six months forward rose to 28.3 from 20.1. The capacity utilization index looking six months forward increased to 37.4 from 35.8. 

The employment index fell to 1.9 from 6.2, suggesting slower employment growth and no change in workweek length. The survey said 16% of firms reported net hiring, while 14% reported net layoffs.