Texas business activity is expanding faster for June, according to a Dallas Federal Reserve Texas Manufacturing Outlook Survey released Monday.
After clocking in at 8.0 for May, this month's report puts business activity up to 11.4. The Dallas Fed's production index tells a similar tale, increasing 4.5 points to hit 15.5 for June. A positive number indicates month-over-month growth, while a negative number means contraction.
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.
Contrary to a report Monday on Chicago's economy, June's strength in Texas seems to be coming from all the right components. The ever-important new orders increased 2.7 points to hit 6.5, while unfilled orders expanded an impressive 11.1 points to go from -8.1 to 3.0.
Employment also jumped 10.2 points to 13.1, as hours worked also increased 1.9 points to hit 4.7.
Looking ahead, June's optimism doesn't seem to be slowing down. The general business activity future (six months ahead) index increased 6.9 points to reach 18.7, while company outlook expanded 13.8 points to 33.8.
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