Texas factory output slowed in February compared with the prior month, while inflationary pressures increased, a survey from the Federal Reserve Bank of Dallas showed on Monday.
The production index of the Dallas Fed’s Texas Manufacturing Outlook Survey fell to 14.5 from 16.6 in January. That indicates a slowdown in the growth of output. A positive reading on the index signals growth, while a negative reading signals a decline.
The index of prices paid for raw materials jumped 11.3 points to 73.4, the highest reading since November. The share of manufacturers reporting paying more for materials rose to 77.3 percent.
The index for prices charged by manufacturers for finished goods rose to 44.6 from 37.1 a month ago, the highest reading since October.
The outlook for prices, however, showed an easing of inflationary pressures. The index for raw materials prices six months from now fell to 51.1 from 59.6 in January. The index for finished goods prices six months from now fell to 45.4 from 50.6.
The index for general business activity increased to 14 from two in January. Econom9ists had forecast the index would decline to a reading of one.
New orders picked up, with the index rising to 23.1 and the growth of new orders index holding steady at 12.6.
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