Along Calculated risk of December 28, 2020 10:39:00 AM
From the Dallas Fed: Texas manufacturing activity expands at a faster pace
The expansion of Texas factory activity recovered in December, according to executives who responded to the Texas Manufacturing Outlook Survey. The production index, an important indicator of the state’s manufacturing conditions, has recovered from 7.2 to 25.5, indicating that production growth is accelerating.
Other indicators of manufacturing activity also show strong growth this month. The New Orders Index rose 11 points to 17.8, and the Orders Index grew from 9.7 to 16.5. The occupancy index rose 11 points to 17.7 and the shipping index rose from 13.7 to 21.9.
In December, awareness of the broader business landscape continued to improve. The general business activity index remained positive, but fell from 12.0 to 9.7... Meanwhile, the company’s outlook index rose from 11.0 to 16.8, pushing it further into the positive territory. Uncertainty about the company’s outlook continued to grow. The index increased by 6 points to 13.4.
Labor market measurements showed increased employment and working hours. Employment index rose from 11.7 to 19.6, suggesting a recovery in employment..
This was the last of the regional federal surveys in December.
This is a graph comparing the regional federal government survey with the ISM Manufacturing Index.
New York and Philadelphia Fed surveys are averaged (yellow, until December), and five Fed surveys, including New York, Philadelphia, Richmond, Dallas, and Kansas City, are averaged (blue, until December). The Supply Chain Management Association (ISM) PMI (red) is until November (right axis).
The December ISM Manufacturing Index will be released on Monday, January 4th. Based on these regional surveys, the ISM Manufacturing Index could drop slightly from November levels to December.
These are diffusion indices, so readings above 0 (or 50 for ISM) mean that activity is increasing (it does not mean that activity has returned to pre-crisis levels). There is none).
December “Texas manufacturing activity expands at a faster pace”
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