Input Stories

In November, Texas factory activity expanded and at a notably faster pace than the prior month. The production index increased from 5.2 to 20.5, jumping above the average of 9.6. The new orders and capacity utilization indexes turned positive, rising 6.5 points to 4.8 and 20.5 points to 19.4, respectively. Meanwhile, shipments climbed 9.3 points to 15.1.

Despite the improvement of nearly every indicator in November, perceptions of manufacturing business conditions worsened, with the general business activity index falling 5.4 points to -10.4. Meanwhile, the outlook decreased 6.0 points to -6.3. On the other hand, the uncertainty index declined 6.5 points to 15.7, falling just below the series average of 17.2.

Labor market indicators suggest a slight reduction in headcounts but a dramatic rise in the workweek in November, with the employment index inching down 0.8 points to 1.2 and the hours worked index soaring 15.4 points to 9.9. Nearly 17.1% of firms reported net hiring while a smaller percentage (15.9%) noted net layoffs.

Price and wage pressures accelerated somewhat in November. The prices paid for raw materials index moved up 1.9 points to 35.3. Meanwhile, the prices received for finished goods index increased 3.1 points to 10.8. The wages and benefits index rose 1.2 points to 15.4, staying below the series average of 21.

The outlook for future manufacturing activity strengthened in November, with the future production index jumping 12.7 points to 33.7. Furthermore, the future general business activity index and future company outlook both moved up, increasing to 11.0 and 16.2, respectively.