Dallas Fed Survey: Texas Manufacturing Output Gains Momentum in July

Texas manufacturing activity picked up pace in July, according to the latest Texas Manufacturing Outlook Survey from the Federal Reserve Bank of Dallas. The survey's production index rose six points to 10.1, a key indicator of state manufacturing conditions.

The new orders index climbed to 6.4 from 2.3, while the shipments index remained relatively steady at 8.8. Business sentiment improved, with the company outlook index jumping 11 points to 13.4 and the employment index staying above its long-term average.

Cost pressures persisted, however, as manufacturers continued to face upward pressure on labor costs. The wages and benefits index increased five points to 30.8, while the raw materials prices index remained essentially unchanged at 41.3.