Fears of a Manufacturing Recession Growing, Dallas Fed Survey Shows
The latest Federal Reserve Bank of Dallas survey confirmed that activity in the Texas manufacturing sector continued to deteriorate in December.
General business activity in the state’s manufacturing industry plummeted to negative 18.8 in December, down from negative 14.4 in November. This represented the eighth consecutive contraction and the third-worst reading of 2022.
The report readings, which featured responses from 90 Texas manufacturers, suggested mixed signals. Capital expenditures and finished goods inventories turned negative, while the measure of new orders contracted for the seventh month. On the other hand, the growth rate of orders index surged 11 points, to negative 9.3, and the capacity utilization index transitioned to positive territory, from negative 3.4 to 8.5. After two straight negative readings, the shipments index edged up nine points, to 1.9….