According to a recent report from the Federal Reserve Bank of Dallas, production at Texas factories leveled off in July, easing a two-month decline in the state’s manufacturing sector. While the sector did continue to show some job cuts, manufacturers expressed an improved view of current economic conditions.
The state production index, a key measure of factory activity, was at a reading of roughly zero for the month, according to the Texas Manufacturing Outlook Survey. The index had been in negative territory the previous two months, at -7.0 in June and -13.1 in May, so the flat reading for July indicates factory output in the state at least stopped its decline in July, according to the Dallas Fed.
Measures of underlying production factors, such as new orders and unfilled orders, also improved during the month, according to the Dallas Fed report. The new orders index rose 6 points to –8.0, while the growth rate of orders index rose 9 points to –9.7, according to the report.