43.2 F
Fort Worth
Wednesday, December 2, 2020
Business Dallas Fed Survey: Texas manufacturing sector continues contraction

Dallas Fed Survey: Texas manufacturing sector continues contraction

Other News

Fort Worth announces plans to purchase Pier 1 Building for City Hall

Plans for a new City Hall for Fort Worth have been knocked around for years, maybe even decades. On Dec. 2, city officials announced...

Texas may receive enough coronavirus vaccine doses for 700,000 people in December, Gov. Greg Abbott says

Texas could receive coronavirus vaccine doses to immunize up to 700,000 Texans in December, assuming U.S. health officials approve coronavirus vaccine candidates from drugmakers...

U.S. Rep. Michael Burgess loses bid for GOP leadership position on key committee

U.S. Rep. Michael Burgess, R-Lewisville, conceded his bid to be the Republican leader on the House Energy and Commerce Committee on Wednesday. “I want to...

Tarrant County reports 6 COVID deaths as Texas surpasses 9,000 hospitalized COVID patients

Tarrant County Public Health on Tuesday, Dec. 1 reported six COVID-19 deaths. The deceased include two men from Fort Worth in their 70s, a...

Texas factory activity declined again in May, though at a slower pace than in April, according to business executives responding to the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey released May 26.

“The contraction seen in the Texas manufacturing sector seems to have peaked in April, as the pace of decline slowed notably in May,” said Emily Kerr, Dallas Fed senior business economist. “The headline production index rebounded 28 points to -28.0. This negative reading indicates output declined for a third month in a row, but the upward movement in the index tells us the contraction is moderating. A bright spot in this month’s survey is certainly the indexes for future manufacturing activity—production, new orders, capacity utilization—which all returned to positive territory in May.”

Additional takeaways from this month’s survey:

  • The new orders index advanced 38 points to -30.6, its highest reading in three months.
  • The general business activity index moved up from -74 to -49.2.
  • The company outlook index moved up nearly 30 points to -34.6, though only 12 percent of manufacturers noted improved outlooks.

Coronavirus Impact on Manufacturing, Services

To continue to track the impact COVID-19 is having on businesses in Texas, executives in both the manufacturing and service sectors were asked new special questions in the May Texas Business Outlook Surveys. Roughly 400 business executives responded April 12-20.

“COVID-19 is having a widespread negative impact across the state,” Kerr said. “More than 80 percent of firms say their current revenues are lower than a typical May—by about 40 percent on average. In Texas, sharply lower oil prices present an additional headwind. Nearly half of firms note their revenues have been negatively impacted by reduced activity in the energy industry. Overall, roughly three-fourths of firms say they can survive for at least six months if current revenue levels were to continue.”

Other takeaways from the COVID-19 survey:

  • Sixty percent of firms applied for a Paycheck Protection Program loan, with 93 percent having already received funds, which most said allowed them to prevent layoffs and wage reductions.
  • More than two-thirds of firms increased working from home in response to COVID-19 and more than 40 percent reduced work hours. Twenty percent furloughed workers and 19 percent implemented layoffs.
  • Among businesses subject to mandated shutdowns, 45 percent have reopened to the maximum allowable level in light of Gov. Greg Abbott’s “Open Texas” plan.

Texas produces around 10 percent of total manufactured goods in the United States, ranking second behind California in factory production. For more information about the survey, visit DallasFed.org.

close

Oh hi there 👋 It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

close

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Fort Worth announces plans to purchase Pier 1 Building for City Hall

Plans for a new City Hall for Fort Worth have been knocked around for years, maybe even decades. On Dec. 2, city officials announced...

Fed reports slowing US economic activity due to virus surge

WASHINGTON (AP) — A Federal Reserve survey of business conditions around the country found that economic activity in several regions slowed in November as...

Incora announces group CEO as it makes Fort Worth move

David Coleal has been named Incora group chief executive officer effective Nov. 30, heading a company that was formed when Wesco Aircraft merged with ...

Fort Worth’s Susan Rudd Bailey is on the front lines as president of the AMA

In a normal year, the president of the American Medical Association spends the year in a whirlwind of travel to state association meetings, national...

Mayor Price announces COVID recovery as cases surge in Texas

Fort Worth Mayor Betsy Price announced that she and her husband, Tom, have both recovered from COVID-19 on Monday, Nov. 30. “I am pleased to...