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The Texas factory production index increased by nine points to 22.3 in September, its highest reading in two years, according to data by the Texas Manufacturing Outlook Survey.
This is the fourth consecutive monthly increase for the index, signaling recovery from the impacts of the COVID-19 pandemic.
Meanwhile, future production index rose to a reading of 47.8.
Other measures of manufacturing activity showed above-average growth this month.
The new orders index advanced five points to 14.7, and the growth rate of orders index held fairly steady at 13.2. The capacity utilization index rose from 10.9 to 17.5, while the shipments index was largely unchanged at 21.5.
Labor market measures indicated stronger employment growth and a continued increase in workweek length. The employment index pushed up from 10.6 to 14.5, suggesting more robust hiring. Twenty-four percent of firms noted net hiring, while 10 percent noted net layoffs. The hours worked index remained positive but moved down from 10.5 to 6.9.
Prices and wages increased further in September. The raw materials prices index rose seven points to 26.2, surpassing the series average. The finished goods prices index pushed up to 5.2, its highest reading in 17 months. Compensation costs continued to rise, with the wages and benefits index coming in at 15.9.
