Texas Manufacturing Activity Accelerates in August Amid Improved Outlooks

Texas manufacturing activity accelerated in August, according to the Federal Reserve Bank of Dallas. The Texas Manufacturing Outlook Survey showed production and new orders posting stronger gains, with the production index rising six points to 16.1.

New orders jumped nearly 16 points to 22.0, while capacity utilization increased to 12.8 from 5.9. Manufacturers reported improving business conditions, with the general business activity index increasing to 11.6 from 1.3 in July.

Employment growth continued but slowed during the month, with the employment index falling about four points to 8.0. However, manufacturers were increasingly optimistic about the coming months, with expectations for future production rising to 40.9 from 34.6.