Source: Federal Reserve Bank of Texas
Texas manufacturing posted a month-on-month rebound in June and nearly doubled its performance the same period in 2020, while costs of raw materials and wages hit fresh highs.
- The production index rose 14 points to 29.4 in June, higher than 15.7 in May and nearly double the 14.8 recorded the same month in 2020.
- The new orders index surged to 26.7 from 20.8 in May, and over four times the series average of 6.4.
- Both the capacity utilization and shipments indexes posted growths during the month.
- General business activity index slipped to 31.1 versus May’s 34.9, but still significantly above the series average of 2.8.
- The company outlook index climbed to 27.5 from 22.0 in May, over seven times the 3.9 in June 2020.
- Employment was slightly up at 22.9 from the previous month’s 22.7 as 32% of companies recorded net hiring while 9% reported net layoffs.
- Raw materials climbed to an all-time high of 80.8, similar to finished goods prices which jumped to 42.8.
- The wages and benefits index likewise carved a fresh series high of 48.1 versus May’s 48.1 and 7.1 in June 2020.