US Economy

Dallas Fed: Texas factory outlook slides to worst in 6 years

Texas factory activity slipped this month as state manufacturers' outlook on broader business activity remained pessimistic, the Dallas Federal Reserve Bank's May survey found.

The sentiment follows dismal initial readings of U.S. first-quarter gross domestic product and disappointing May factory surveys from some of the Fed's other regional locations. The central bank's policymaking committee is monitoring economic data as it considers when to tighten monetary policy.

Welders cut beams for the substructure of a new oil and gas drilling rig at the Orion Drilling Co. manufacturing and fabrication facility in Corpus Christi, Texas.
Eddie Seal | Bloomberg | Getty Images

The production index—which measures state manufacturing conditions—fell to -13.5, its lowest in six years. The general business activity index dropped to -20.8, the worst in nearly six years.

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Metrics including new orders, capacity utilization, shipments and employment contracted this month, as well.

The wage index stayed flat at 14.7, while the reading on future general business activity rose 11 points to 4.9.