Texas Factory Production Eased in October -- Dallas Fed
By Xavier Fontdegloria
Growth in Texas factory output slowed in October compared with
the previous month amid severe supply-chain bottlenecks, according
to data from the Federal Reserve Bank of Dallas released
The production index of the Texas Manufacturing Outlook Survey,
a key measure of state manufacturing conditions, decreased to 18.3
in October from 24.2 in September. The reading signals solid output
growth, the Dallas Fed said.
The index for general business activity--which assesses broader
business conditions in the manufacturing sector--rose to 14.6 from
4.6 the prior month. The indicator came in above economists'
forecasts, who polled by The Wall Street Journal expected it to be
at 6.5. Any level above zero signals growth.
The industrial sector continues to grow across the U.S. amid
strong demand despite that supply-chain bottlenecks and labor
shortages are constraining output, surveys across the country
Other measures of manufacturing activity also indicated notable
growth, although movements compared with the previous month were
mixed, the Dallas Fed said.
The survey's demand indexes rose, suggesting demand for goods
remains strong. The new orders index increased to 14.9, and the
growth rate of orders index climbed to 13.6.
The shipments and capacity utilization indexes slipped slightly
to 13.8 and 20.1, respectively, the data showed.
Supply-chain disruptions were widespread, according to the
survey. The delivery time index edged up to 25.9, while the
unfilled orders index rose to 20.9.
"We are unable to secure enough raw materials to meet our growth
demand from customers," a respondent from the chemical
manufacturing sector said.
Labor market measures indicated robust employment growth and
longer workweeks. The employment index increased to 28.3, a
six-month high, and the hours worked index was largely steady at
Prices continued to increase at a robust pace. The raw materials
prices remained near an all-time high but edged down to 76.3, while
the finished goods prices index rose to a new high of 49.8.
Expectations regarding future manufacturing activity improved in
October. The future general business activity index rose to 15.0,
and the future production index increased to 46.8, the Dallas Fed
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
October 25, 2021 11:09 ET (15:09 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.