Texas factory activity continued to expand in January but moderated from the rapid expansion seen in December, according to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey.
Several measures of manufacturing activity pointed to slower growth. The production index, a key measure of state manufacturing conditions, remained elevated but retreated to 16.8 in January after surging to an 11-year high in December. The new orders index moved down from 30.1 to 25.5, and the growth rate of orders index fell six points to 15.5. The capacity utilization index stayed positive but dropped 12 points to 14.5, while the shipments index rose six points to 27.1, indicating a pickup in growth. Perceptions of broader business conditions remained highly positive.