WASHINGTON (dpa-AFX) - Factory activity in Texas grew at a slower pace in September amid a weaker increase in production, but companies continue to expect increased business in the next six months, a survey by the Dallas Fed showed on Monday.
The general business activity index of the Texas Manufacturing Outlook Survey fell seven points to -8.7 in September.
The production index shed 10 points to reach 5.2, suggesting below-average output growth. The capacity utilization measure fell sharply to 3.9 from 13.7. The shipments index and the new orders gauge both dropped eight points each to 6.7 and -2.6, respectively.
The company outlook index was near zero in September, while the outlook uncertainty index eased to a slightly below-average reading of 13.9.
The employment measure slid 12 points to -3.4, which was the lowest reading since April. The survey found that 13 percent of firms reported net hiring, while 16 noted net layoffs. The hours worked index fell 12 points to 3.4, suggesting longer workweeks during the month.
Cost pressures remained elevated with the raw materials index at 43.4 and the wages and benefits index steady at 15.9. The finished goods prices measure slid to 11.7.
The expectations for manufacturing activity in next six months remained positive, though optimism eroded slightly. The indexes for future production and general business activity decreased along with most other measures for manufacturing activity.
That said, all were in the positive territory, suggesting increased activity in the next six months.
The survey data was collected from September 16-24 and 72 of the 116 Texas manufacturers surveyed submitted responses.
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