Dallas Fed Manufacturing Index Accelerates in June

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

The Texas factory production index, a key measure of state manufacturing conditions, increased in June by 14 points to 29.4, according to the results of the Texas Manufacturing Outlook Survey and the Texas Service Sector Outlook Survey, released on Monday.

The reading indicates strong output growth, with other measures of manufacturing activity also showing accelerated growth this month.

The new orders index rose to 26.7 from 20.8 in May.

The growth rate of orders index leveled up to 23.4 from 19.5 last month.

In addition, the capacity utilization index rose by seven points to 30.6, while the shipments index surged by 14 points to 31.8.

Meanwhile, the general business activity index registered a reading of 31.1, slightly lower from its level in May.

The company outlook index rose six points to 27.5, and the outlook uncertainty index increased to 17.6.

The employment index stabilized at 22.9, with 32% of firms noting net hiring and 9% recording net layoffs.

The gauge of hours worked remained steady at 23.8.

In the same time, the raw materials prices index rose to an all-time high of 80.8. Similarly, the finished goods prices index surged to 42.8.

Likewise, wages and benefits index logged a record high level of 48.1.

The future production index rose nine points to 56.6, while the future general business activity index rose six points to 37.3.