Texas Factory Activity Improves in June — Dallas Fed

By Joshua Kirby

Manufacturing activity improved in Texas this month as production picked up, but concerns for the coming months remain.

The Texas Manufacturing Outlook Survey rose to minus 15.1 in June from minus 19.4 in May. 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.

The survey's gauge of production showed a slight increase, reversing the previous month's decline, while new orders remained negative but continued to recover from sharper declines earlier in the year. Uncertainty remains a major concern for business executives in the state, the Dallas Fed said.

Measures of employment showed a slight decline, and shorter work-weeks, reflecting a jobs market that is beginning to loosen a little.

Price pressures remain heavy in the state, the survey showed. Wages and benefits increased, as did finished-goods prices, though prices for raw materials were stable.

The survey comes as business activity across the U.S. continues to grow rapidly, according to a nationwide survey of purchasing managers released last week. Activity remains strong in both manufacturing and services, the survey showed.

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

(END) Dow Jones Newswires

June 24, 2024 11:01 ET (15:01 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.