Factory activity expanded in August, three months in a row, after the spring contraction due to COVID-19 pandemic, according to press release. Key measure of state manufacturing was 13.1, slightly lower than July, but an implication of moderate growth.
- New orders index jumped 3 points to 9.8 while growth rate of orders index expanded more than 10 points to 11.8
- Shipments index rose to 23.3 from 17.3
- Capacity utilization index remained positive at 10.9, although it inched down.
- General perceptions of business conditions improved as activity index turned positive at 8.0 after being negative for five months.
- Company outlook index rose from 11 points to 16.6, the highest in about two years.
- Index on uncertainty of companies’ outlook positive although it fell to 8.2
- Employment index up to 10.6 from 3.1, an indication of solid growth in labor market.
- Hours worked index rose by 5 points to 10.5
- Labor and input costs rising but selling prices unchanged.
- Raw materials price index up by 10 points to 19.4 while wages and benefits index up by 6 points to 15.2
- Finished goods price index remained near zero.
- Future activity expectations positive, future production index above 43.0 average reading and future business activity index up by 10 points to 20.4
Market reacts to Texas manufacturing activity news. EURUSD is up 0.24%, SPY is up 1.58%, SHY: NASDAQ is down 0.0067%, QQQ is up 1.24%, DIA is up 1.80%, IEF: NASDAQ is down 0.053%
