Texas Future Outlook Remains Positive

Texas factory activity was little changed in November but the outlook slipped. The production index, a key measure of state manufacturing conditions, came in at 1.7, indicating output barely increased from October. Other survey measures suggested flat manufacturing activity in November. The new orders index came in at 0.4, suggesting that demand was unchanged from October. Perceptions of broader business conditions worsened in November. The general business activity index fell to minus 2.8 from plus 1.8 in October, returning to negative territory. The company outlook index moved down to minus 4.8 in November from plus 2.4 in October, registering its first negative reading since April. Labor market indicators were mixed. The employment index edged up to 6.7 in November, with more than 20 percent of firms reporting hiring compared with 15 percent reporting layoffs. The hours worked index dipped from minus 5.9 to minus 7.1. Indexes reflecting future business conditions fell sharply in November. The index of future general business activity plunged from 16.8 to minus 5.3, its lowest reading in four months. The index of future company outlook dropped from 20.9 to 1.8. Indexes for future manufacturing activity also fell this month but remained positive.