Texas factory activity, as measured by the production index, "picked up for a third consecutive month in November," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index fell to 1.9 in November from 3.6 in October.
The production index grew to 16.9 from 13.3.
Capacity use gained to 16.2 from 11.9, the Fed reported. Volume of new orders decreased to 5.4 from 6.2, while growth rate of orders index held at negative 0.1.
Unfilled orders dropped to negative 5.2 from negative 3.9 in the prior survey, while the volume of shipments increased to 14.8 from 13.2, and delivery times widened to negative 9.4 from negative 3.6. The materials inventory index reversed to positive 3.0 from negative 3.0, the finished goods inventory climbed to 5.9 from 1.2. Prices paid for raw materials dipped to 22.6 from 22.7, while prices received for finished goods slid to 2.2 from 3.5. Wages and benefits fell to 14.6 from 20.4, while the employment index dropped to 5.0 from 9.6, and the hours worked index gained to 4.2 from 3.9, and the capital expenditures index slid to 10.69from 11.8.
As for future outlook (six months from now), the general business conditions index slid to 7.0 from 8.1 last month, the production index increased to 34.8 from 26.1, while capacity use rose to 36.2 from 28.5, the Fed reported. Volume of new orders grew to 33.6 from 24.6, while growth rate of orders index added to 26.4 from 17.1.
Unfilled orders slipped to 7.6 from 7.3, while the volume of shipments rose to 34.2 from 33.8, and delivery times widened to negative 3.7 from negative 0.2. Materials inventories fell to 4.9 from 10.2, and the finished goods inventory dropped to negative 3.8 from positive 5.1.
Prices paid for raw materials declined to 31.7 from 32.9, while prices received for finished goods slid to 26.8 from 27.9. Wages and benefits jumped to 48.2 from 38.4, the employment index doubled to 30.5 from 13.9, while the hours worked index climbed to 12.2 from 5.5, and the capital expenditures index grew to 21.0 from 17.9.
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.
