Texas factory activity, as measured by the production index, continued to strengthen in February, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas and released Monday.

The general business conditions index increased to 17.8 in February from 15.3 in January. The production index gained to 11.2 from 5.8, while capacity use increased to 10.0 from 8.5, the Fed reported. Volume of new orders slipped to 5.8 from 9.5, while growth rate of orders index remained positive 6.6.

As for the future outlook, the general business conditions index slid to 15.9 from 22.3 last month, the production index decreased to 40.8 from 43.6, and capacity use fell to 39.1 from 41.1. Volume of new orders fell to 37.0 from 45.6, while growth rate of orders index increased to 32.1 from 30.0.

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