News & Insights

In April, Texas factory activity expanded at a faster pace after weakening the prior month. The production index increased from 6.8 to 19.0, climbing well above the series average of 9.6. The new orders index stepped up 3.8 points to 9.9, while the capacity utilization index jumped 12.6 points to 19.8, both above the series averages of 4.7 and 7.5, respectively. Meanwhile, the shipments index soared 13.2 points to 15.0, also climbing above the series average of 7.8. The Eleventh District consists of all of Texas, northern Louisiana and southern New Mexico.

Perceptions of manufacturing business conditions weakened in April, with the general business activity index moving down 2.1 points to -2.3. At the same time, the company outlook index turned positive, improving 6.5 points to 3.0. Moreover, the uncertainty index fell 8.1 points to 17.9 but remained slightly above the series average of 16.9.

Labor market indicators suggested a slight decline in headcounts and a longer workweek in April, with the employment index ticking up 0.1 points to -0.9 and the hours worked index rising 3.1 points to 4.0. Nearly 14.1% reported net hiring, while a larger percentage (15.0%) noted net layoffs.

Price pressures strengthened, while wage pressures weakened in April. The prices paid for raw materials index rose 4.3 points to 37.0. Meanwhile, the prices received for finished goods index jumped 9.2 points to 27.6, both higher than the series averages. The wages and benefits index ticked down 0.4 points to 24.8, also remaining above the series average of 21.0.

The outlook for future manufacturing activity remained positive in April, despite the future production index moving down 1.1 points to 34.6. Moreover, the future company outlook index declined 2.6 points to 15.6, while future general business activity increased 3.5 points to 14.1, as the future general business activity index climbed above the series average.