Federal Reserve Bank of Dallas (12/29/2014)

Texas factory activity increased in December from November, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose strongly from 6 to 15.8, indicating output grew at a faster pace in December than in November.

Labor market indicators reflected unchanged workweeks but continued employment increases. The December employment index held steady at a solid reading of 9.2, with 17% of firms reporting net hiring compared with 7% reporting net layoffs. The hours worked index dropped from 5.7 to 0, indicating no change in hours worked in December. The wages and benefits index ticked up from 23.9 to 25.1. This index has been consistently elevated this year, suggesting continued upward pressure on compensation costs.