Texas factory activity, as measured by the production index, "picked up further in October," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index fell to 3.6 in October from 12.8 in September.
The production index grew to 13.3 from 11.5.
Capacity use gained to 11.9 from 10.7, the Fed reported. Volume of new orders increased to 6.2 from 5.0, while growth rate of orders index slipped to negative 0.1 from positive 0.9.
Unfilled orders dropped to negative 3.9 from positive 1.1 in the prior survey, while the volume of shipments increased to 13.2 from 10.3, and delivery times widened to negative 3.6 from negative 1.1. The materials inventory index improved to negative 3.0 from negative 7.9, the finished goods inventory increased to positive 1.2 from negative 10.0. Prices paid for raw materials rose to 22.7 from 17.6, while prices received for finished goods slid to 3.5 from 10.6. Wages and benefits jumped to 20.4 from 9.7, while the employment index fell to 9.6 from 10.0, and the hours worked index reversed to positive 3.9 from negative 0.6, and the capital expenditures index climbed to 11.8 from 5.9.
As for future outlook (six months from now), the general business conditions index slid to 8.1 from 13.3 last month, the production index decreased to 26.1 from 33.3, while capacity use fell to 28.5 from 31.5, the Fed reported. Volume of new orders slid to 24.6 from 32.7, while growth rate of orders index declined to 17.1 from 25.4.
Unfilled orders increased to 7.6 from 4.6, while the volume of shipments rose to 33.8 from 31.0, and delivery times reversed to negative 0.2 from positive 3.7. Materials inventories gained to 10.2 from 4.6, and the finished goods inventory surged to positive 5.1 from negative 1.2.
Prices paid for raw materials increased to 32.9 from 31.0, while prices received for finished goods soared to 27.9 from 13.9. Wages and benefits jumped to 38.4 from 28.6, the employment index decreased to 13.9 from 21.9, while the hours worked index dropped to 5.5 from 9.5, and the capital expenditures index grew to 17.9 from 16.1.
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.
