FX.co ★ Texas Manufacturing Sector Rebounded

The general business activity index from the Dallas Federal Reserve for Texas manufacturing experienced an upward shift in July, reaching 0.9 compared to a negative 12.7 in June, indicating a return to stability after five consecutive months of decline. Notably, factory production saw a significant uptick, with the production index soaring to 21.3, marking its highest level in over three years. Although new orders remained subdued at -3.6, this marked an improvement from the previous month. Both capacity utilization and shipments transitioned to positive territory. Manufacturers' outlook improved notably, as reflected in the company outlook index, which turned positive for the first time in half a year. Employment activities showed an increase, with more companies hiring rather than reducing their workforce, and there was a notable rise in working hours. While input costs continued to be elevated, the growth rate of selling prices decelerated. Looking forward, expectations for future business conditions and production prospects showed improvement, with most indicators reflecting a cautious optimism, even though some indicators remain below their long-term averages.