The Texas Manufacturing Industry Business Activity Index continues to expand, albeit with uncertainty, the Federal Reserve Bank of Texas reported.
Thus, the Federal Reserve Bank of Dallas’ General Business Activity Index for Texas manufacturing fell to 9.0 in August 2021 from 27.3 in the previous month, pointing to the slowest growth in manufacturing activity since January.
In particular, the production index, a key measure of state manufacturing conditions, fell 10 points to 20.8.
The reading was well above average and indicates strong production growth. Other measures of manufacturing activity also point to slower but above-average growth this month.
Overall, Texas factory activity continued to increase in August, albeit at a slower pace, according to business executives responding to the Texas Manufacturing Outlook Survey.
The new orders index came in at 15.6, down from 26.8, but more than double the series average of 6.5.
Meanwhile, the growth rate of the order index fell 15 points, to 10.7. Shipping and capacity utilization rates stood at 21.7 and 15.2, respectively, below July levels, but still elevated.
Perceptions of broader trading conditions continued to improve in August, although indices were markedly lower than in recent months.
For its part, the general business activity index fell 18 points to 9.0, its lowest reading since January.
The company’s outlook index fell 11 points to 11.5. The Outlook Uncertainty Index rose from 14.6 to 21.1, registering its highest reading since May 2020.
Labor market measures indicate continued growth. The employment index remained very high at 21.9, a couple of points below the July reading.
29% of the companies noticed net hires, while 7% noticed net layoffs. The index of hours worked remained stable at 24.3.
Among the top companies in the Texas manufacturing industry are: Lockheed Martin Aeronautics, Dell, Apple, KBR, L3Harris Technologies, ISR Systems, Bell Textron, NXP Semiconductors USA, TechnipFMC Umbilicals, BP America and General Motors.