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Manufacturing Sector in Texas Sees Record Positive Growth in 2017

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Marking production levels that haven’t been this high since prior to the recession, Texas had an amazing year in manufacturing over the course of 2017. Each month, Texas manufacturing executives are surveyed by the Federal Reserve Bank of Dallas with respect to market conditions. An integral component of the industry’s performance indicators is what’s called the production index. Numbers below zero indicate the executives saw a reduction in business, while anything above zero indicates the majority saw the opposite – positive growth.

When December’s production index was registered, it reading 32.8, which is the highest figures since August of 2006. This capped off 2017 with an average production index of 19.5, which was also amazing in that it was the highest average since pre-recession. Texas’ manufacturing sector made a rebound from the oil market crash which brought down a large portion of the Lone Star State’s manufacturing output.

The first full year for which the Federal Reserve Bank of Dallas compiled this survey was 2005. Comparisons for each year’s data for manufacturing over the course of the 13 years since are available on the Bizjournals.com site, a link for which is provided here. In an overall review of the manufacturing sector, it appears that the company outlook, general business activity, and new order indexes all posted 11-year highs, and the hours worked index (with respect to labor markets) reached a high that hasn’t been seen in 12 years.