Dallas Fed Manufacturing Index Rises

Manufacturing activity in the Federal Reserve Bank of Dallas district increased in January.

The production index rose to 13.8 from -5.2 in December, the bank said today. Meanwhile, the bank's general activity index stood at 4.7 compared with -8.8 in the final month of last year.

Readings above zero indicate positive activity, while readings below zero indicate a contraction in activity.

The bank's index also picked up on increasing inflationary presssures faced by manufacturers in the region. The bank reported its index of prices paid for raw materials moved to 30.8 in January from 19.0 the month before. Meanwhile, the prices received index hit 1.5 compared with 1.7 in December.

Hiring in the region picked up, with the Dallas Fed's employment index at 4.6 from a flat reading a month ago.

Manufacturing in the Dallas Fed district is significant, with Texas producing more than 8% of all U.S. manufactured goods in 2005. A large concentration of the activity is in energy production and electronic goods.