Dallas Fed: Factory Activity Weakened

“Texas manufacturing weakened further in November,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas and released yesterday. The general business conditions index declined to negative 17.0 in November from negative 6.2 in October.The production index slumped to negative 3.5 in November from positive 10.6 in October, while capacity use plunged to negative 1.7 from positive 10.7, the Fed reported.Prices paid for raw materials slipped to 28.3 from 33.6, while prices received for finished goods slid to 8.7 from 12.3. Wages and benefits increased to 25.4 from 19.7, the number of employees index slid to negative 0.9 from positive 2.4, the average workweek index reversed to negative 2.6 from positive 3.2, and the capital expenditures index remained at 11.5.As for future outlook, six months from now, the general business conditions index declined to negative 6.2 from negative 4.2 last month, and the production index decreased to 26.6 from 33.9, according to the Fed. Prices paid for raw materials grew to 45.6 from 45.4, while prices received for finished goods dipped to 25.7 from 27.2.The wages and benefits index slid to 51.3 from 51.6, the number of employees index declined to 16.8 from 22.3, the average workweek index fell to 0.9 from 5.0, and the capital expenditures index slid to 16.1 from 17.5.