NEW YORK -(Dow Jones)- Business conditions in Texas-area manufacturing weakened noticeably in December, according to a report from the Federal Reserve Bank of Dallas, while key subcomponents staged a modest rebound from the last reading.
The bank said its general business activity index plunged to -3.2 in December from 3.2 in November. Readings below 0 indicate contraction, and positive numbers indicate expanding activity.
Key sub-components painted a mixed picture, with some indicating a slowdown and others forecasting improvement.
The production index for the current month rebounded to -1.3 from -5.1 last month, still mired in negative territory after plunging to a two-year low in the bank's prior report.
The employment index rose to 11.8 in December from 9.0 in November.
The volume of new orders advanced to -0.5 from -5.1, and the growth rate of new orders edged higher, to -6.3 from -6.8.
The shipments index rose to -0.8 from -1.1.
The prices-paid index surged to 26.6 from 19.0, while the prices-received index slid to -2.6 from 1.1 in November.
Dallas area manufacturers were slightly less optimistic about the future.
The expectations index covering the outlook for each respondent's company six months ahead dipped to 22.8 from 23.0, and the expectations about general business activity edged up to 10.3 from 9.7.
Looking out six months, the jobs expectations index surged to 23.8 from 13.6.
-Javier E. David, Dow Jones Newswires; 212-416-4564; javier.david@dowjones.com
(END) Dow Jones Newswires
December 27, 2011 11:22 ET (16:22 GMT)
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