Dallas Fed Manufacturing Activity Index Slows in May

Factory activity in Texas expanded at a slower pace last month, according to the latest data by the Federal Reserve Bank of Dallas.

The Texas Manufacturing Outlook Survey results showed on Tuesday that the production index decreased by 18 points to 15.7 in May.

The new orders index registered a reading of 20.8, down from 38.5 in April.

The gauge measuring the growth rate of orders decreased from 32.3 to 19.5.

The capacity utilization index fell from 34.6 to 23.2, while the shipments index declined from 32.6 to 18.3.

The general business activity index came in at 34.9, and the company outlook index fell 7 points to 22.0.

The outlook uncertainty index moved up from zero to 14.7, indicating that uncertainty is back on the rise.

“Labor market measures indicate robust but slower growth in employment and steady growth in work hours. The employment index came in at 22.7, down from 31.3 but still highly elevated. 29% of firms noted net hiring, while 6 percent noted net layoffs. The hours worked index held fairly steady at 22.7.”