Texas manufacturing at three year high, says Dallas Fed

June 5, 2017 by  

The Federal Reserve Bank of Dallas recently issued a news release stating that May 2017 has seen an uptick in manufacturing in Texas, which is now at its highest point in three years.

On May 30, the Dallas Fed’s senior economist, Emily Kerr, explained that various significant indexes rose to levels last seen in mid-2014. At that time, oil was selling for over $100 a barrel. That high point was followed by plummeting oil prices that reached as low as $26 per barrel during the second month of 2016. A strengthening dollar combined with those low oil prices put a dampener on Texas manufacturing, but the factors relevant to that slow down are abating.

The Texas Manufacturing Outlook Survey is used by the Dallas Federal Reserve to determine the Texas production index. From May 16-24, 113 Lone Star companies were polled and the results showed an increase of 7.9 points, which put it at its loftiest point since April of 2014. In fact, May of this year was the 11th month in a row that Texas manufacturing rose. Of companies responding, over a third indicated they were working closer to their maximum capacity.

Other key indicators cited by the Dallas Fed, the new order index and the company outlook indicator, further suggest the demand for business forms will steadily rise as well.