Houston Texas service sector activity grew at the fastest rate this April since late 2014, and the state s manufacturing activity continued to grow, judging from a Federal Reserve Bank of Dallas survey released April 26-27, which would tend to strengthen power demand and prices.
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The Dallas Fed s Texas Service Sector Survey, released April 27, shows that the revenue index rose from March s 21.6 to 26.1 this April, which can be contrasted with the pandemic-induced contraction to negative 64.8 in April 2020.
The survey s various indexes reflect the result when subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase. For example, the most recent survey had 39.1% of service sector survey respondents reporting an increase in revenue and 13% reporting a decrease, yielding an index of 26.1.
Dallas Fed Factory Index Breaks Records on New Orders, Employment and Wages
26 Apr 2021
The reopening of the U.S. economy continued to boost Texas manufacturing in April, data from the Federal Reserve Bank of Dallas showed Monday.
Perceptions of general business conditions improved more than expected and uncertainty retreated, the Dallas Fed’s Texas Manufacturing Outlook Survey indicated. The general business activity index came in at 37.3, up eight points from its March reading. Economists had predicted a slight retreat after last month’s strong number. The top of the range of analysts surveyed by Econoday was 30, with the median prediction at 27.5.
April 2021 Texas Manufacturing Index Declines But Remains Strong
Analyst Opinion of Dallas Fed Manufacturing Survey
Important subindices new orders significantly improved (remains in expansion and is now the highest in history) and unfilled orders was little changed (remains in expansion). This should be considered a little better than last month. Data were collected April 13-21, and 107 Texas manufacturers responded to the survey.
The expectations from Econoday were 25.0 to 30.0 (consensus 27.5) for the general activity index and the reported value declined from 48.0 to 34.0. From the Dallas Fed:
Texas factory activity expanded at a markedly faster pace in March, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, surged 28 points to 48.0, its highest reading in the survey s 17-year history.
Provided by Dow Jones By Xavier Fontdegloria Manufacturing activity in Texas continued to expand at a solid level in April after reaching record-high growth the previous month, data from the Federal Reserve Bank of Dallas showed Monday. The production index of the Texas Manufacturing Outlook Survey, a key measure of state manufacturing conditions, stood at 34 in April, down from 48 in March, which was the highest reading in the survey s 17-year history. Despite the fall, the indicator signals that factory activity in the state s industrial sector expanded at a solid clip as it is still well above average and indicates robust output growth, the Dallas Fed said.
“It’s really surprising because you would think of the current status we’re in with layoffs and all the things we’re hearing about, it’s difficult for the people to find employment or stayed employed,” she said. “The real fact of the matter is for us, it’s difficult for us to find essential workers in an infrastructure market. It’s extremely competitive right now. Texas is booming.”
A March survey by the Federal Reserve Bank of Dallas found Texas factory activity expanded at a markedly faster pace, according to business executives responding to the Texas Manufacturing Outlook Survey. One of the key metrics included the production index, which saw the highest reading in the survey’s 17-year history.