Texas manufacturing growth slows sharply as demand drops

Manufacturing growth in Texas declined sharply in June, and demand dropped for the first time in two years, according to a new report.

The June decline noted the second straight month of slowing growth, and factory output grew only marginally, according to a survey from the Federal Reserve Bank of Dallas released Monday.

The index for general business activity, which measures broader business conditions, fell 10 points to -17.7, according to business executives responding to the Texas Manufacturing Outlook Survey

That’s the lowest level since May 2020, when the COVID-19 pandemic pummeled manufacturing activity. The Dallas Fed said the new reading signals that activity declined, as it came in well below the zero threshold that separates expansion from contraction.

The Dallas Fed report is based on a series of questions on prices, wages and revenue restraints asked of 366 Texas business executives from June 14-22 in an anonymous survey.

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