The Federal Reserve Bank of Dallas reported on Monday its general
business activity index for manufacturing in Texas decreased to -15.7 in March from
an unrevised -13.5 in the previous month. That was the 11th
consecutive negative reading, suggesting a decline in activity.
According to the survey’s details, the production index, a key gauge of
state manufacturing conditions, increased 5.3 points to +2.5 this month, pointing
to a modest rise in output. Meanwhile, the new orders indicator fell 1.1 points
to -14.3, remaining in negative territory for the tenth straight month and
pointing to a further decrease in demand. The measure of the growth rate of
orders rose 1.7 points to -15.2, also remaining negative. Elsewhere, the capacity
utilization gauge jumped 6.4 points to +2.3, returning into expansion territory
after a contraction in the previous month. The
employment measure climbed 11.4 points to +10.4 after falling below zero last
month. On the price front, the raw materials prices index dropped
4.8 points to 20.3, its lowest level since July 2020, while
the finished goods prices index declined 8.8 points to 7.0, its lowest
level since November 2020.