The Federal Reserve Bank of Dallas reported its general business activity index for manufacturing in Texas rose to -6.1 in June from an unrevised -49.2 in May.

According to the report, the production index, a key measure of state manufacturing conditions, surged from -28.0 in May to 13.6 in June, indicating moderate expansion in output following three months of record or near-record declines. The new orders index climbed 34 points to 2.9 in June, recording its first positive reading in four months, with nearly a third of manufacturers noting an increase in orders. The capacity utilization and shipments indexes also returned to positive territory. Meanwhile, the employment index rose 10 points to -1.5, but remained negative. Elsewhere, perceptions of broader business conditions were mixed in June. The general business activity index surged 43 points but stayed negative at -6.1. The index measuring uncertainty regarding companies’ outlooks retreated notably again to 9.1, its lowest reading since January.