Texas Manufacturing Outlook Survey, December 2011 - FRB Dallas

Texas factory activity weakened slightly in December, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, posted a second negative reading but moved up from –5.1 to –1.3. This suggests a slowing of the pace of decline.

Other measures of current manufacturing conditions indicated flat activity in December. The new orders index suggested stagnant demand, registering a near-zero reading after dipping into negative territory last month. The shipments index was little changed from its November reading and continued to suggest flat shipment volumes. The capacity utilization index was also near zero although it rebounded from last month, rising from –10.2 to 0.7.

Perceptions of broader economic conditions were mixed in December. The general business activity index dipped into negative territory after two consecutive positive readings. The index came in at –3, with 12 percent of manufacturers noting improvement in the level of business activity while 15 percent noted a worsening. The company outlook index remained positive and edged up from 4.7 to 6.6. Nearly 90 percent of manufacturers said their outlooks were unchanged or improved from last month.

Read more...Texas Manufacturing Outlook Survey, December 2011 - Economic Data - FRB Dallas