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Texas Factory Activity Accelerates in July
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Texas Factory Activity Accelerates in July

Production and new orders picked up and manufacturers grew more optimistic, according to the Dallas Fed's latest Texas Manufacturing Outlook Survey.

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Texas factories shifted into a higher gear in July, with output and orders picking up and manufacturers sounding more confident about what comes next, the Federal Reserve Bank of Dallas reported.

The Dallas Fed's Texas Manufacturing Outlook Survey showed its production index — a key measure of state factory activity — rising to 10.1 from 4.1 in June. New orders firmed to 6.4 from 2.3, and shipments climbed to 8.8 from 7.1. The general business activity index edged up to 1.3 from zero.

Optimism returns

Sentiment improved sharply. The company outlook index jumped 11 points to 13.4, while a gauge of uncertainty fell to 6.4 from 10.9. Hiring stayed positive but eased a touch, with the employment index at 12.2, even as the wages-and-benefits index rose to 30.8 — a sign that pay pressures remain.

Prices for both raw materials and finished goods stayed elevated, though the pace of increases moderated slightly. Manufacturers' expectations for production and activity six months out held near recent highs.

Sources: Federal Reserve Bank of Dallas, Fort Worth Inc..

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