The Federal Reserve Bank of Dallas announced on Monday its general
business activity index for manufacturing in Texas declined to -8.4 in January from
a downwardly revised -20.0 (from 18.8) in the previous month. That represented the
ninth consecutive negative reading, which, however, was the second-smallest in
the sequence.
According to the survey’s details, the production index, a key gauge of
state manufacturing conditions, plunged 8.9 points to 0.2 this month, suggesting
a flat output. Meanwhile, the new orders indicator surged 7.0 points to -4.0,
remaining in negative territory for the eighth straight month and pointing to a
continued decrease in demand. The measure of the growth rate of orders fell 3.0
points to -12.3, also remaining negative. Elsewhere, the capacity utilization gauge
decreased 1.9 points to 6.0, staying in expansion
territory for the second straight month. The shipments index tumbled 6.7 points to -6.3, returning
into contraction territory after one-month growth. The employment measure came
in at 17.6 in January, up 4.0 points from December, holding in growth territory
for the 31st consecutive month. On the price front, the raw materials prices index slipped 1.4 points to 20.5, its
lowest level since July 2020, while the finished goods prices index dropped 1.0 points
to 9.9, its lowest level since November 2020.