Dallas Fed released its Texas Manufacturing Outlook Survey today and it’s not the pretty picture that many of us have held on the Texas economy. This report shows that Texas factory production has declined yet again in May to its lowest level since 2009, the end of the Recession.
According to the Dallas Fed the new orders index did not change and still sits at -14.1. Capacity utilization (how full is the factory, are they running more than one shift, etc.) also posted a negative at -11.6 and Shipments are down to -13.2.
Worse than that is the General Business Activity which calculates business executives’ perception of the broader business conditions and that perception worsened to -20.8.
Only 12% of firms reported net hiring V 21% reporting net layoffs.
On the sunnier side, local Texas executives in manufacturing expect future business conditions to improve with the future company outlook jumping to 15.1, an increase of 10 points. Future manufacturing indices also moved up , pushing solidly into positive territory.
What do you think is causing this decrease in factory production and do you think Texas will improve or increase factory production in the near future or are we at a correction point and why do you think that?
What are your plans to endure during lean times? Do you have a network of referral partners who will continue recommending your products or services during good times or bad or are you a Lone Ranger?