June has been a scorcher of a month for Texas manufacturers.
That's what Texas manufacturing executives told the Federal Reserve Bank of Dallas earlier this month when they responded to the monthly "Texas Manufacturing Outlook Survey."
The production index, a key measure of manufacturing conditions in the Lone Star State, rose six points to 17.1, posting its highest reading in more than two years.
Other survey metrics reflected "notably stronger manufacturing activity" as well, the Dallas Fed said.
- The new-orders index climbed to 13 in June, its highest level since July 2011.
- The capacity-utilization index rose to a two-year high, jumping from 6.4 to 15.3.
- The shipments index advanced 12 points to 15.4.
Perceptions of broader business conditions rebounded strongly in June.
The general business-activity index rose to 6.5 after posting negative readings in April and May, while the company-outlook index soared 20 points to 13.3, reaching its highest level in 16 months.
Steady Labor Demand
Labor-market indicators reflected steady labor demand and longer workweeks, according to the Dallas Fed.
The employment index was zero in June, suggesting no change in employment levels. The hours-worked index moved up to 4.8 after four months in negative territory.
Expectations regarding future business conditions improved significantly in June.
The index of future general business activity surged to 14.7 after negative readings in April and May. The index of future company outlook rose sharply as well, coming in at 21.8.
Indexes for future manufacturing activity also moved up.
Price movements were mixed in June; input prices and wages rose while selling prices declined, according to the Dallas Fed.
The Dallas Fed conducted this month's survey from June 11-19, and 95 Texas manufacturers responded. The monthly survey asks firms whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.
Texas produces more than 9 percent of total manufactured goods in the United States, ranking second behind California in factory production, according to the Dallas Fed.