Econoday Economic Report: Dallas Fed Mfg Survey February 27, 2012

2012 Economic Calendar

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Dallas Fed Mfg Survey

Released On 2/27/2012 10:30:00 AM For Feb, 2012

	Prior	Consensus	Consensus Range	Actual
Bus Activity Index	15.3	15.0	10.0 to 16.5	17.8
Production Index	5.8			11.2

Highlights
Manufacturing is gaining strength in Texas, according to the Dallas Fed. The general business activity index improved to 17.8 in February from 15.3 the month before. The latest number was the highest reading since November 2010. Production picked up the pace, rising to 11.2 from 5.8 the month before. However, the new orders index showed slower growth at 5.8 versus 9.5 in January.

Labor market indicators reflected a sharp increase in hiring and longer workweeks. The employment index jumped to 25.2, its highest level since the beginning of 2006. Twenty-nine percent of firms reported hiring new workers, while 4 percent reported layoffs. The hours worked index continued to suggest average workweeks lengthened.

Expectations regarding future business conditions remained optimistic in February. The index of future general business activity remained positive for the fifth month in a row but moved down from 22.3 to 15.9.

Market Consensus before announcement
The Dallas Fed general business activity index in its Texas manufacturing survey in January shot up to 15.3 after dipping to minus 0.3 in December. The company outlook index also increased markedly, rising from 5.0 in December to 13.5. Both indexes reached their highest readings in 10 months. The new orders index jumped to 9.5, its highest reading in six months, from minus 2.0 in December.

Definition
The Dallas Fed conducts this monthly survey of manufacturers in Texas regarding their operations in the state. Participants from across the state represent a variety of industries. In the latter half of the month, the questions for the manufacturing survey are electronically transmitted to respondents and answers are collected over a few days. About 100 manufacturers regularly participate in the Dallas Fed survey, which began collecting data in mid 2004. Participants are asked whether various indicators have increased, decreased or remained unchanged. Answers cover changes over the previous month and expectations for activity six months into the future. The breakeven point for each index is zero with positive numbers indicating growth and negative numbers reflecting decline. Why Investors Care

2012 Release Schedule

Released On: 1/30 2/27 3/26 4/30 5/29 6/25 7/30 8/27 9/24 10/29 11/26

Release For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

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Actual Data Source: Haver Analytics