The Federal
Reserve Bank of Dallas announced on Monday its general business activity index
for manufacturing in Texas tumbled to -27.4 in January 2024 from a downwardly revised
-10.4 (from -9.3) in the previous month. This was the lowest reading since May
2023 (-29.1), suggesting
a contraction in activity for the 21st consecutive month, which was the second-steepest in the sequence.
According to
the survey’s details, the production index, a key gauge of state manufacturing
conditions, plunged 16.6 points to -15.4 this month, returning into contraction
territory after a rise in December 2023. Meanwhile, the new orders indicator dropped 2.4 points to -12.5, remaining in
negative territory for the 20th straight month, indicative of decreasing demand.
The
measure of the growth rate of orders jumped 8.0 points to -14.4 but stayed in
negative territory for the 21st month in a row. Elsewhere, the employment
measure declined 6.9 points to -9.7, its lowest reading since May 2020. The
index of outlook uncertainty increased 2.9 points to -20.9, its highest level
in four months. On the price front, the raw materials prices index increased 2.4
points to +20.2, the highest level in four months, while the finished goods prices index decreased 6.0 points to +0.1, suggesting
prices of finished goods in January were similar to those in December.