News

In November, Texas factory activity was relatively flat, but most indicators of manufacturing were in negative territory. The production index turned negative again to -0.9, after rising to 14.6 in October. The new orders index pushed further into negative territory to -11.9, indicating continued declines in demand. Meanwhile, the capacity utilization and shipments indexes both turned negative to -4.8 and -5.9, respectively.

Perceptions of business conditions were mixed in November, and the general business activity index held relatively steady at -2.7. Meanwhile, the company outlook index turned positive, improving to 5.8. The outlook uncertainty index, which has been volatile lately, dropped more than 10 points to 5.9 after a significant increase in the previous month.

Labor market indicators suggested some employment growth and steady workweeks in November. The employment index soared 10 points to 4.9, while the hours worked index rose nearly six points to 0.3, both turning positive. About 19% of firms reported hiring, while 14% noted layoffs. Moderate upward pressure on prices and wages persisted, with all indexes roughly aligned with historical averages. The wages and benefits index fell to 18.6. On the other hand, the raw materials prices index spiked more than 12 points to 28.5, while the finished goods prices index inched up to 8.8.

The outlook for future manufacturing activity remained optimistic. The future production index edged up to 44.0, a three-year high. Similarly, the future general business activity index rose slightly to 31.2, also a three-year high.