Texas Industry Remains Sluggish — Dallas Fed

By Joshua Kirby

Texas factory activity continued to falter this month, suggesting the sector's outlook remains weak.

The Texas Manufacturing Outlook Survey, published Monday, was broadly stable at minus 14.5 in April, confounding economists' hopes for a slowing of the rate of decline.

The Federal Reserve Bank of Dallas conducts the monthly survey, which asks Texas business executives about conditions in the industrial sector. A reading below zero indicates a contraction in industry.

Production was a bright point over the month, with the index turning positive, suggesting overall output was greater than in March. But the outlook uncertainty index worsened, while measurements of new orders remained negative.

The survey's gauge of inflationary pressures showed mix results. The wage index ticked higher, showing rapid growth in pay, but input prices eased, suggesting good news for Texas consumer prices in the coming months.

The reading comes as industrial activity in the U.S. appears to be slowing. A survey of purchasing managers set out last week showed a slower rate of growth in the sector, in line with a wider cooling in the economy.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 29, 2024 11:06 ET (15:06 GMT)

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