The Federal Reserve Bank of Dallas reported on Tuesday its general
business activity index for manufacturing in Texas slipped to -9.3 in December from
an unrevised -19.9 in the previous month. This was the best
reading since January (-8.4) but indicated continued contraction in activity for the 20th consecutive
month.
According to the survey’s details, the production index, a key gauge of
state manufacturing conditions, jumped 8.6 points to +1.4 this month, returning
into growth territory after a decline in November. Meanwhile, the new orders indicator climbed 9.6 points to -10.9 but remained in
negative territory for the 19th straight month, indicative of decreasing demand. The
measure of the growth rate of orders increased 3.2 points to -22.2, staying in negative
territory for the 20th month in a row. Elsewhere, the employment measure fell 6.6
points to -1.6, recording its first negative result since February. The index of
outlook uncertainty fell 2.0 points to +18.3, its lowest level in four months. On
the price front, the raw materials prices index increased 5.2 points to +17.8,
the highest level in three months, while the finished goods prices index soared 13.0 points to +6.8, the highest
level since April.