In its monthly survey of Texas manufacturing executives, the Federal Reserve Bank of Dallas announced its index of factory production rose to 10 in February. That follows a near flat showing in January.
Dallas Fed economist Emily Kerr says manufacturing has had a volatile year, but that the overall trend is encouraging.
“Month to month, the survey can bounce around a bit, but in general, we’ve seen a long strand of positive readings in production, which is a positive sign for manufacturing in Texas.”
The survey points to a number of positive developments for Texas manufacturing, including on the job front.
“About half of manufacturers expect to increase employment over the next six to twelve months, and the main factor that they cited was an expectation of higher sales growth.”
Prices for both raw materials and finished goods rose in February. Nearly 70% of those surveyed expect raw materials to get more expensive over the next six months, while more than a third expect higher prices for finished goods.