September 1, 2020
Texas factory activity expanded in August for the third consecutive month following spring’s record contraction amid the COVID-19 pandemic, according to business executives responding to the Dallas Fed’s Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, came in at 13.1, down slightly from July but still indicative of moderate growth.
Other measures of manufacturing activity also point to expansion. The new orders index advanced three points to 9.8, and the growth rate of orders index surged more than 10 points to 11.8. The shipments index rose from 17.3 to 23.3, while the capacity utilization index remained positive at 10.9.
Perceptions of broader business conditions improved in August. The general business activity index turned positive after five months in negative territory. The company outlook index registered a third consecutive positive reading, shooting up 11 points to 16.6, its highest reading in nearly two years.
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