by Calculated Risk on 6/27/2011 10:30:00 AM

From the Dallas Fed: Texas Manufacturing Activity Rises but at a Slower Pace

Texas factory activity expanded in June, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, remained positive but fell from 12.7 to 5.6, suggesting output growth slowed this month.

Other measures of current manufacturing conditions indicated flat activity, while new orders picked up. ... The new orders index rose from 1.1 in May to 6.4 in June, its eighth consecutive month in positive territory. ... Labor market indicators reflected slower growth in labor demand. The employment index came in at 5.3, with 14 percent of manufacturers reporting hiring new workers compared with 9 percent reporting layoffs. ... Price and wage pressures moderated this month.

There are two more regional manufacturing surveys that will be released this week (Richmond and Kansas City), and those surveys will probably show weakness similar to the Philly and Empire State surveys. So far the regional surveys suggest the ISM index will be in the low 50s in June - and might show contraction (below 50) for the first time since July 2009.