Dallas Fed Manufacturing Survey Snaps Back

Texas manufacturing activity unexpectedly snapped back into expansion in August, with the general business activity index rising 9.0 points to 2.7, extending July's rebound from the three-year low set in June. Indicating faster output growth, the production index also jumped higher, rising 8.6 points to 17.9 and posting its strongest reading in nearly a year. Strength was notable in shipments, rising 7.4 points to 17.6, and capacity utilization, rising 4.5 points to 15.7, the highest reading in eleven months for both measures. The survey's demand indicators were also mostly stronger, with new orders up 3.8 points to 9.3, delivery times up 6.1 points to 1.3, and unfilled order up 2.6 to minus 0.2.