Survey: Texas Capital Expenditures Make Major Gains for August
Texas business activity continues to improve in August, according to a Dallas Federal Reserve Texas Manufacturing Outlook Survey (link opens a PDF) released today.
After clocking in at 4.4 for July, this month's report puts business activity at 5.0. Analysts had expected more of the same, with a slight increase to 4.5.
The monthly survey asks about 100 Texas manufacturers to rate their views on current and future business activity. Market watchers keep a close eye on this index, as Texas' manufacturing can serve as an important indicator of national economic health. A positive number indicates month-over-month growth, while a negative number means contraction.
While manufacturers may think conditions are improving, another drop in the production index says otherwise. After hitting a two-year high in June, production dropped from an 11.4 reading in July to 7.3 this month.
Taking a closer look at the index's components, all-important new orders were cut in half to a 5.4 reading, while capacity utilization fell 7.6 points to 4.6 and hours worked went into the red at -9.9. However, capital expenditures posted the largest gains for August, increasing 6.9 points to 10.4, a possible signal that businesses are confident about investing in their future.
The article Survey: Texas Capital Expenditures Make Major Gains for August originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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