The Federal Reserve Bank of Dallas reported its general business activity index for manufacturing in Texas dropped to 2 in April from a revised 6.9 in the previous month (originally 8.3).

Economists had forecast the indicator to decline to -2.6.

According to the report, the production index, a key measure of state manufacturing conditions, edged up two points to 12.4, indicating output growth accelerated slightly from March. At the same time, the new orders index rose eight points to 9.8, and the capacity utilization index increased to a seven-month high of 15.6, while the shipments index held rather steady at 6.3. The employment index dropped eight points to 4.6, its lowest reading since the end of 2016.