Monday, July 27, 2015

Dallas Fed: "Texas Manufacturing Slump Moderates"

by Bill McBride on 7/27/2015 10:57:00 AM

From the Dallas Fed: Texas Manufacturing Slump Moderates, Outlooks Improve

Texas factory activity declined slightly in July, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, remained negative but rose for a second month in a row to -1.9, suggesting further moderation in the decline in manufacturing output.
...
Perceptions of broader business conditions were mixed. The general business activity index remained negative, but it rose for a second month in a row and reached -4.6 in July. Manufacturers expect improved conditions ahead. The company outlook index surged nearly nine points and posted its first positive reading in seven months, coming in at 1.2.

Labor market indicators reflected slight employment declines and shorter workweeks. The July employment index was negative for a third month in a row and edged down to -3.3.
emphasis added
The Dallas region has been especially hard hit by the decline in oil prices. This survey might be more negative in August since oil prices have declined again.

 The Richmond Fed survey (last of the regional Fed surveys for July) will be released tomorrow.