Manufacturing activity in Texas registered its eighth straight month of growth in January but the pace of expansion slowed significantly, according to survey data released Monday by the Federal Reserve Bank of Dallas.
The production index of the Texas Manufacturing Outlook Survey crashed more than 22 points to 4.6 in January, down from 26.8 a month earlier.
That indicates “a sharp deceleration in output growth,” the Dallas Fed said.
The index for general business activity for January fell to 7.0 from 10.5 the previous month. Economists had expected the general business index to rise in January.
The new orders index fell 13 points to 6.3. The capacity utilization index dropped 10 points to 9.2.
Prices paid for raw materials rose while prices received for finished goods fell.
The employment component fell while the hours worked index moved higher.
The outlook portion of the survey, which asks companies about what they expect six-months from now, also registered declines. Both the general business conditions and company outlooks fell and uncertainty increased. Expectations for production and employment fell, while expectations for new orders rose slightly.
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