Dallas Fed: Texas Manufacturing Slumps

NEW YORK ( TheStreet) -- The Federal Reserve Bank of Dallas reported that its monthly survey of Texas factory activity fell sharply in June.

The Manufacturing Outlook Survey found that general business activity slumped to -17.5, down 10.1 from May. Negative numbers indicate contracting business business activity, while positive figures indicate growth in the sector.

The production index that measured conditions at 84 factories around Texas dropped to 5.6 from 12.7 in May, which the Dallas Fed interpreted as slower growth in the sector.

New orders picked up, but manufacturing activity was sluggish overall.

The company outlook index rose to 7.2 from 3.2, which meant that manufacturers were more optimistic about their near-term prospects for business.

More companies were hiring than those that were cutting payrolls. The outlook for future general business activity was at 2.9, the lowest forecast since August 2010.

Pressures from prices and wages eased in June after raw-material costs rose slower than expected, and as finished-goods prices remained flat.

-- Written by Joe Deaux in New York.

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