Federal Reserve Bank of Dallas

29/07/2024 | Press release | Archived content

Dallas Fed: Texas manufacturing activity remains flat in July amid weakening demand

News Releases

July 29, 2024

DALLAS-Texas factory activity was flat again in July, according to business executives responding to the Texas Manufacturing Outlook Survey.

"Texas manufacturing production held steady in July, while demand weakened," said Emily Kerr, senior business economist at the Dallas Fed. "Outlooks worsened, and uncertainty spiked. A bright spot this month was a rebound in the survey's employment index, which signaled net hiring after weakness the past few months."

Key takeaways from this month's survey:

  • The production index held fairly steady at -1.3, with the near-zero reading signaling little change in output from June.
  • The new orders index dropped 12 points to -12.8.
  • Labor market measures suggested employment increases but shorter workweeks.
  • Upward pressure on prices and wages continued.
  • The general business activity index inched down to -17.5, and the company outlook index stumbled 12 points to -18.4.

The Dallas Fed asked a series of special questions on labor market and financial conditions in the Texas Business Outlook Surveys and heard back from 333 business executives (services and manufacturing) June 16-24.

"About half of firms report they are currently trying to hire, and a lack of applicants remains the top hiring impediment though the share citing it retreated further to 41 percent, down from a peak of 76 percent two years ago," Kerr said. "Applicant availability and firms' ability to retain workers continue to improve."

Key takeaways from the special questions:

  • A third of firms noted a decrease in the amount of spending per customer over the past three months, while most noted no change. Among retailers the share noting a decrease was larger, at 52 percent.
  • Nearly one-third of firms noted a slowing in the pace of receivables coming in over the past three months, while most noted no change.
  • The vast majority of firms noted no change in the pace at which they pay their bills, though 10 percent said they are paying more slowly, more out of caution or prudence than due to financial difficulty.

For more information visit DallasFed.org. 

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Media contact:
Jon Prior
Federal Reserve Bank of Dallas
Phone: 214-922-6857
Email: [email protected]