Texas manufacturing activity increased for the twelfth month in a row in April, according to the latest survey by the Federal Reserve Bank of Dallas. Production and new orders reached their highest levels since 2010. Labor market indicators reflected stronger employment growth and longer workweeks. More than a quarter of the firms surveyed reported a net increase in hiring, while just 8% reported net layoffs.
Emily Kerr is business economist for the Dallas Fed.
“Manufacturing is what we call a leading indicator of the economy. So, what happens in the manufacturing sector soon follows, generally, in the broader economy. The strength that we’re seeing in the Texas manufacturing sector is a really positive sign for the Texas economy at large, especially going into the next couple of months.”
Manufacturers in the energy and transportation sectors were among the most optimistic. Food and beverage makers held the most negative outlook, citing rising prices and weak sales.