Texas business activity declined further in June according to the Dallas Fed's manufacturing report on Monday, whose business activity index fell to -24.1 from May's -10.3.
"Several indicators for current conditions declined from May levels and turned negative," read the report. "Despite June's slowdown, more than a third of manufacturers responding to the survey expect increases in production and volume of new orders six months from now."
The production index declined to a flat reading compared to May's +5.5 score while new orders fell to -6.5 compared to +8.3 in the previous month.
Indicators of inflation were mixed with the prices paid index reaching 72.2 compared to 67.3 in May, but the prices received index fell to 33.4 compared to 34.2 in May.
The report employment index also fell into negative territory to -1.9 compared to May's reading of +0.9.
By Erik Kevin Franco and edited by Cristina Markham
©CEP News Ltd.