Manufacturing Activity Grows at a Slower Pace in February, but Optimism Improves

Source: Federal Reserve Bank of Dallas

The production index, gauging the manufacturing conditions in Texas, edged lower by two points from January to 14.5 in February. SPY is down -0.54%, DXY is up +0.24%.

• The new orders index rose by three points to 23.1 in February, with the growth rate of the orders index robust at 12.6.
• The state’s capacity utilization index held steady at 11.5, while the shipments index erased the January drop by rising by 15 points to 23.5.
• In the labor market, employment growth remained robust, with the index at 18.4, down by nine points from January. The number of hours worked index fell to 19.0.
• Prices and wage pressures persisted, with the raw materials prices index up by 11 points to 73.4. The finished goods prices gauge edged higher by eight points to 44.6.
• Overall perceptions of business conditions improved, with the general business activity index up by 12 points to 14.0. The uncertainty index remained high at 17.0 but eased by 14 points from January.
• Manufacturing firms remained optimistic, with the future production index up from 38.0 to 42.1. The index for future general business activity rose by four points to 20.6.