NEW YORK - “Texas manufacturing activity remained sluggish in March,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index dipped to negative 22.7 in March from negative 21.4 in February.
The production index increased to 13.6 in March from 7.1 in February, while capacity use gained to 8.2 from 7.9, the Fed reported. Volume of new orders surged to 11.8 from zero, while growth rate of orders index improved to negative 1.8 from negative 8.0.
Unfilled orders inched lower to negative 3.7 from negative 3.6 in the prior survey, while the volume of shipments rose to 16.4 from 7.1, and delivery times improved to negative 4.5 from negative 5.3. The materials inventory index remained negative 1.8, the finished goods inventory narrowed to negative 4.5 from negative 5.4. Prices paid for raw materials rose to 65.2 from 44.3, while prices received for finished goods grew to 28.2 from 15.9. Wages and benefits climbed to 24.6 from 20.3, while the number of employees index dipped to 9.1 from 9.7, and the average workweek index rose to positive 4.6 from negative 7.0, and the capital expenditures index declined to 2.7 from 4.5.
As for future outlook (six months from now), the general business conditions index improved to negative 10.0 from negative 11.0 last month, the production index decreased to 21.8 from 33.3, while capacity use slid to 19.0 from 29.7, the Fed reported. Volume of new orders fell to 20.9 from 28.1, while growth rate of orders index declined to 14.6 from 15.3.
Unfilled orders improved to negative 0.9 from negative 5.4 in the prior survey, while the volume of shipments dropped to 24.5 from 31.5 and delivery times fell to negative 3.6 from negative 2.7. Materials inventories increased to negative 2.7 from negative 7.2, the finished goods inventory gained to negative 7.3 from negative 9.0.
Prices paid for raw materials rose to 56.9 from 49.6, while prices received for finished goods jumped to 30.9 from 22.5. Wages and benefits soared to 40.9 from 36.0, the number of employees index dropped to 5.4 from 15.3, while the average workweek index slumped to 0.9 from 5.5, and the capital expenditures index fell to 7.3 from 8.2.
The Texas Manufacturing Outlook Survey is a monthly anecdotal survey of manufacturers in Texas. Roughly 80 manufacturers regularly participate in the Dallas Fed survey, which began collecting data in May 2004.
