Texas Factory Output Jumps as Richmond District Manufacturing Contracts

Overview

• Texas production rose sharply in November, with the Dallas Fed’s production index up 15 points to 20.5 and capacity use and shipments also strengthening.
• New orders in Texas turned positive at 4.8 after −1.7 in October, signaling a modest improvement in demand.
• Broader sentiment in Texas softened as the general business activity index fell to −10.4 and the company outlook index dropped to −6.3.
• Texas labor metrics showed flat head counts with the employment index at 1.2, while hours worked increased to 9.9 and price pressures ticked higher as wages held steady.
• By contrast, the Richmond Fed’s Fifth District reported a deeper November slump, with its composite index down to −15, shipments at −14, new orders at −22, and local business conditions at −20 as some forward expectations improved slightly.