BREAKING: Dallas index lower than expected!

Dallas Regional Activity for June

• Actual: -23.2 versus -20.0 expected and -29.1 previously

The regional indicator from the Federal Reserve Bank of Dallas came in slightly lower than expected but higher than the previous reading. However, the negative figure still indicates a contraction in the Texas Manufacturing region.

In June, Texas factory activity declined according to the Texas Manufacturing Outlook Survey, with the following key points:

• General business activity and company outlook indexes remained negative, improving slightly to -23.2 and -10.7, respectively.
• The production index fell three points to -4.2, indicating a slight contraction in output.
• The new orders index remained negative at -16.6, reflecting contraction for over a year.
• The growth rate of orders index dropped to -23.7, its lowest value since mid-2020.
• The capacity utilization index decreased to -6.0, while the shipments index plunged by 14 points to -17.0.

Overall, the survey suggests a contraction in Texas manufacturing, with worsening perceptions of broader business conditions, weaker employment growth, and reduced work hours.