02:35 PM EST, 11/25/2024 (MT Newswires) -- Texas manufacturing activity improved this month into shallower contraction territory but not as much as expected while the production index turned negative, according to the Federal Reserve Bank of Dallas.

The general business activity index edged up to minus 2.7 in November from minus 3 in October, the Dallas Fed's manufacturing outlook survey showed Monday. Analysts surveyed in a Bloomberg poll were expecting a month-over-month improvement to minus 2.4.

Production, which the Fed branch calls a key measure of state manufacturing conditions, swung negative at minus 0.9 from positive 14.6 the month prior. The near-zero reading indicates that output was steady overall, according to Emily Kerr, senior business economist at the Dallas Fed.

New orders dropped more than eight points to minus 11.9, the regional Fed's survey showed. Shipments swung to minus 5.9 from positive 1.5 in October.

The index charting employment climbed into positive territory at 4.9 in November from a minus 5.1 level in October. About 19% of firms in the survey noted net hiring, while 14% reported net layoffs. The gauge for prices paid for raw materials increased more than 12 points to 28.5, while the selling prices index ticked up 1.4 points to 8.8.

"Hiring resumed, and price and wage pressures were moderate," Kerr said.

Six months out, outlooks improved, according to Kerr. The gauge for general business activity rose to 31.2 in November - a three-year high - from 29.6 in October. The future production index climbed to 44 from 42.4 month over month, the regional Fed said.

The forward-looking indicator for new orders increased by 8.3 points to 44.9, while the future shipments gauge edged down 1.3 points to 37.8.