The Federal Reserve Bank of Dallas reported its general business activity index for manufacturing in Texas rose to -6.2 in July from an unrevised -12.1 in June.

Economists had forecast the indicator to increase to -5.0.

According to the report, the production index, a key measure of state manufacturing conditions, moved from 8.9 to 9.3, indicating output growth continued at roughly the same pace as in June. At the same time, the new orders index edged up to 5.5, while the capacity utilization index inched up to 11.2, and the shipments index climbed nine points to 10.2. The employment index rose seven points to 16.0, suggesting robust growth in employment. Expectations regarding future business conditions improved in July as well, with the index of future general business activity rising nine points to 6.0 and the index of future company outlook increasing six points to 9.1.