The
Federal Reserve Bank of Dallas reported Monday its general business activity
index for manufacturing in Texas rose to 14.6 in October from an unrevised 4.6
in September, pointing to a continuing expansion in Texas factory activity. This was the highest reading since July.
According
to the report, the production index, a key measure of state manufacturing
conditions, came in at 18.3 in August, down 5.9 points from September, but
remained well above its average and continued to point to solid output growth. In
addition, the shipments index fell 4.9 points to 13.8, while the capacity
utilization index dropped 4.4 points to 20.1, but still remained at elevated
levels. Meanwhile, the new orders index rose 5.4 points to 14.9, and the growth
rate of orders index surged 11.1 points to 13.6. Elsewhere, the employment
index went up 2.0 points to 28.3, its six-month high. On the price front, the
raw materials prices index remained near an all-time high but edged down to
76.3, while the finished goods prices index rose to a new high of 49.8.