Photo: Daniel Goodman / Business Insider
UPDATE:Manufacturing in the Southwest continued to decline although the pace of contraction slowed significantly from a month earlier, new data out of the Federal Reserve Bank of Dallas shows.
The key business activity index improved to -1.6 in August from -13.2 a month earlier. Economists polled by Bloomberg had forecast a narrower gain to -6.5.
A reading below zero indicates contraction.
Production and new orders in the region both remained positive, although they weakened from the July report. Production fell 5.6 points to +6.4, while orders dropped to +0.2 in August.
Nonetheless, employment continued to strengthen, with the number of employees sub-index up 2.4 points to +14.2.
“Employment growth picked up in August, with the index rising to 14.2, its highest reading in five months,” the Federal Reserve said in a statement. “20-four per cent of firms reported hiring new workers, while 10 per cent reported layoffs.”
Below, key output from the report.
The third major regional Fed reading for August is minutes away, with expectations for the index to continue to show contraction in the manufacturing industry.
The report out of the Federal Reserve Bank of Dallas is forecast to increase to -6.5 in August from -13.2 a month earlier
The eleventh district includes activity in Texas, northern Louisiana, and southern New Mexico.