June 30, 2020
Texas factory activity rebounded strongly in June, according to business executives responding to the Dallas Fed’s Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, climbed from -28.0 to 13.6 after three months of record or near-record declines.
Other measures of manufacturing activity also pointed to a rebound in growth. June’s new orders index advanced 34 points to 2.9, its first positive reading in four months.
The growth rate of orders index pushed up 25 points but remained negative at -5.8. The capacity utilization and shipments indexes also returned to positive territory.
Perceptions of broader business conditions were mixed in June. The general business activity index surged 43 points but stayed negative at -6.1. The company outlook index climbed back into positive territory, from -34.6 to 2.7, while the index measuring uncertainty regarding companies’ outlooks retreated notably again to 9.1—its lowest reading since January.
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