Texas factory activity decreased in November, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, dipped from 4.1 to –5.1, registering its first negative reading in two years.
Other measures of current manufacturing conditions also indicated contraction in November. The new orders index suggested deterioration of demand, falling to –5.1 after a year in positive territory. Eighteen percent of manufacturers noted increased order volumes in November, compared with 23 percent noting a decrease. The shipments index edged down from 2.7 to –1.1, suggesting the volume of shipments fell slightly. The capacity utilization index tumbled to –10.2 after several months of weak readings centered around zero.
Read more...Texas Manufacturing Outlook Survey, November 2011 - Economic Data - FRB Dallas