July 28, 2020
Texas factory activity continued to expand in July following a record contraction in the spring, according to business executives responding to the Dallas Fed’s Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, inched up from 13.6 to 16.1, suggesting a slight pickup in the pace of output growth.
Other measures of manufacturing activity also pointed to slightly accelerating growth this month. The new orders index advanced four points to 6.9.
Additionally, the growth rate of orders index turned positive in July, coming in at 1.3, after spending four months in negative territory. The capacity utilization and shipments indexes pushed up to 14.0 and 17.3, respectively, their highest readings in nearly a year.
Expectations regarding future business activity remained universally positive in July, though some respondents were more bearish than they were than last month, according to the Dallas Fed.
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