Texas Factory Output Growth Slows as Production Index Falls 10 Points to 9.4

6 articles · Updated · Federal Reserve Bank of Dallas · May 26

Texas manufacturers reported slower expansion in May, with the production index dropping to 9.4 from 19.0, still signaling output growth but at a more moderate pace.
Other activity gauges also softened: capacity utilization plunged 15 points to 5.2, shipments fell to 7.4 and new orders slipped to 6.4, while the growth rate of orders turned negative at -2.9.
Broader business conditions were essentially flat, with the general business activity index at 0.4 and the company outlook index at 0.3; employment was also little changed at 0.2.
Price pressures diverged as raw-materials costs rose to an eight-month high of 42.7, finished-goods price pressure eased to 18.9 and wage pressure held near steady at 23.6.
Six-month expectations remained positive despite elevated uncertainty, with the future production index at 36.8 and future general business activity at 14.3.

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