Might 30, 2023
Texas manufacturing sector continues to face declining orders
What’s new this month
For this month’s survey, Texas enterprise executives had been requested supplemental questions on wages, costs and prices. Outcomes for these questions from the Texas Manufacturing Outlook Survey, Texas Service Sector Outlook Survey and Texas Retail Outlook Survey have been launched collectively. Learn the special questions outcomes.
Texas manufacturing facility exercise remained comparatively flat in Might, in accordance to enterprise executives responding to the Texas Manufacturing Outlook Survey. The manufacturing index, a key measure of state manufacturing situations, inched down from 0.9 to -1.3, with the near-zero studying suggestive of little change in output from final month.
Different measures of producing exercise confirmed declines in Might. The brand new orders index has now been in unfavourable territory for a yr and pushed down farther from -9.6 to -16.1. The expansion price of orders index additionally fell, declining 10 factors to -20.7, its lowest worth since mid-2020. The capability utilization index moved down from 3.9 to -4.9, whereas the shipments index was unchanged at -3.0.
Perceptions of broader enterprise situations continued to worsen in Might. The final enterprise exercise index dropped six factors to -29.1, its lowest studying in three years. The corporate outlook index pushed down seven factors to -22.3, additionally a three-year low. The outlook uncertainty index retreated to 13.4, a studying beneath common.
Labor market measures recommend continued employment development however flat work hours. The employment index ticked up two factors to 9.6, barely above its common studying. Twenty-three % of corporations famous web hiring, whereas 13 % famous web layoffs. The hours labored index inched as much as -0.9.
Value pressures dropped additional beneath regular ranges, and wage pressures additionally eased however remained elevated. The uncooked supplies costs index fell six factors to 13.8, additional beneath its common studying of 27.8. The completed items costs index fell eight factors to 0.4, with the near-zero studying suggestive of flat promoting costs. The wages and advantages index declined 13 factors to 25.0, a studying now solely barely above its common of 21.0.
Expectations relating to future manufacturing exercise had been blended in Might. The longer term manufacturing index rebounded from 3.0 to 12.0, whereas the longer term common enterprise exercise index remained unfavourable, edging as much as -12.7. Most different measures of future manufacturing exercise remained optimistic however confirmed blended actions this month.
Subsequent launch: Monday, June 26
Information had been collected Might 16–24, and 91 Texas producers responded to the survey. The Dallas Fed conducts the Texas Manufacturing Outlook Survey month-to-month to acquire a well timed evaluation of the state’s manufacturing facility exercise. Corporations are requested whether or not output, employment, orders, costs and different indicators elevated, decreased or remained unchanged over the earlier month.
Survey responses are used to calculate an index for every indicator. Every index is calculated by subtracting the share of respondents reporting a lower from the share reporting a rise. When the share of corporations reporting a rise exceeds the share reporting a lower, the index might be better than zero, suggesting the indicator has elevated over the prior month. If the share of corporations reporting a lower exceeds the share reporting a rise, the index might be beneath zero, suggesting the indicator has decreased over the prior month. An index might be zero when the variety of corporations reporting a rise is the same as the variety of corporations reporting a lower. Information have been seasonally adjusted as essential.