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Texas Manufacturing Activity Increases Again, but at a Slower Pace

Texas factory activity increased again in October, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, posted a fourth consecutive positive reading but moved down to 6.7. This suggests output grew but at a slower pace this month.

Other measures of current manufacturing activity showed mixed movements. The new orders and growth rate of orders indexes posted second consecutive negative readings in October, holding fairly steady at -3.5 and -5.1, respectively. The capacity utilization and shipments indexes have been positive throughout the second half of the year so far but fell notably after spiking last month, coming in at 0.8 and 1.9. The capital expenditures index moved up to 8.7, reaching its highest reading in nearly two years.  

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