Research >> Economics
Texas Fed Manufacturing Activity weakened in March 2024
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Texas factory activity weakened in March after stabilizing in February, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell five points to -4.1, a reading that suggests a slight decline in output month over month.
Other measures of manufacturing activity also indicated declines this month. The new orders index—a key measure of demand—dropped 17 points to -11.8 after briefly turning positive last month. The capacity utilization index edged down five points to -5.7, and the shipments index plunged from 0.1 to -15.4.
Perceptions of broader business conditions continued to worsen in March. The general business activity index edged down from -11.3 to -14.4, and the company outlook index slipped from -8.5 to -16.2. The outlook uncertainty index moved up 12 points to 23.0, a six-month high.
Labor market measures suggested slower job growth and shorter workweeks this month. The employment index remained positive for a second month in a row but fell four points to 1.5. Fifteen percent of firms noted net hiring, while 13 percent noted net layoffs. The hours worked index remained negative for a sixth month in a row and held fairly steady at -7.9.
Wage and prices increased this month. The wages and benefits index held steady at a near-average reading of 20.4. The raw materials prices index remained below average but moved up from 15.4 to 21.1. The finished goods prices index climbed to 11.0 after two near-zero readings, suggesting a resumption in selling price growth.
Expectations regarding future manufacturing activity generally improved in March. The future production index pushed up 10 points to 32.3, and the future general business activity index remained slightly positive, at 1.3. Several other measures of future manufacturing activity edged further positive this month.
Posted: March 25, 2024 Monday 10:30 AM