Texas factory activity, as measured by the production index, "declined in April," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Tuesday.
The general business activity index widened to negative 20.8 in May from negative 16.0 in April.
The production index widened to negative 13.5 from negative 4.7.
Capacity use slid to negative 11.6 from negative 10.4, the Fed reported. Volume of new orders decreased to negative 14.1 from negative 14.0, while growth rate of orders index narrowed to negative 15.2 from negative 15.5.
Unfilled orders improved to negative 10.6 from negative 15.1 in the prior survey, while the volume of shipments fell to negative 13.2 from negative 5.6, and delivery times dropped to negative 10.2 from negative 5.3. The materials inventory index increased to negative 1.7 from negative 6.0, the finished goods inventory climbed to negative 4.5 from negative 7.5. Prices paid for raw materials rose to negative 1.7 from negative 11.2, while prices received for finished goods widened to negative 8.7 from negative 7.7. Wages and benefits decreased to 14.7 from 16.5, while the employment index reversed to negative 8.2 from positive 1.8, and the hours worked index fell to negative 11.6 from negative 5.0, and the capital expenditures index rose to 3.4 from 3.3.
As for future outlook (six months from now), the general business conditions index reversed to positive 4.9 from negative 5.9 last month, the production index grew to 38.6 from 28.2, while capacity use rose to 36.5 from 22.7, the Fed reported. Volume of new orders gained to 35.3 from 30.6, while growth rate of orders index climbed to 27.3 from 19.6.
Unfilled orders reversed to positive 4.0 from negative 4.1, while the volume of shipments rose to 33.3 from 30.8, and delivery times increased to positive 1.3 from negative 8.7. Materials inventories improved to negative 6.4 from negative 9.9, and the finished goods inventory declined to negative 13.8 from negative 7.7.
Prices paid for raw materials rose to 21.1 from 20.4, while prices received for finished goods climbed to 10.1 from 9.8. Wages and benefits slipped to 30.6 from 34.2, the employment index increased to 14.1 from 12.4, while the hours worked index rose to 11.1 from 4.2, and the capital expenditures index grew to 10.5 from 8.9.
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.
