Research >> Economics
Texas Fed Manufacturing Activity stabilized in December 2023
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Texas factory activity stabilized in December after contracting in November, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, pushed up nine points to 1.4, with the near-zero reading indicating little change in manufacturing output from November.
Most other measures of manufacturing activity indicated continued contraction this month, with the exception of the capacity utilization index, which rebounded from -10.1 to 1.3. The new orders index remained negative but moved up from -20.5 to -10.9 in December. The shipments index posted a 12th consecutive negative reading but rose four points to -5.3.
Perceptions of broader business conditions continued to worsen in December, though sentiment was less negative than in recent months. The general business activity index pushed up 11 points to -9.3, and the company outlook index rose from -18.8 to -11.0. The outlook uncertainty index inched down to 18.3, roughly in line with its average reading.
Labor market measures suggested slight employment declines and stable workweeks in December. The employment index slipped seven points to -1.6, posting its first negative reading in 10 months. Sixteen percent of firms noted net hiring, while 18 percent noted net layoffs. The hours worked index came in near zero after two months of slightly negative readings.
Wage and price growth increased this month. The wages and benefits index rose from 20.0 to 25.5. The raw materials prices index moved up five points to 17.8, a reading below average and indicative of more modest cost growth than usual. The finished goods prices index rebounded from -6.2 to 6.8, its highest reading since April.
Expectations regarding future manufacturing activity remained mixed in December. The future production index was largely unchanged at 12.4, while the future general business activity index remained negative but pushed up from -13.4 to -8.7. Most other measures of future manufacturing activity remained in positive territory this month.
Posted: December 26, 2023 Tuesday 10:30 AM