Texas factory activity, as measured by the production index, "declined in March," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index slipped to negative 17.4 in March from negative 11.2 in February.
The production index dropped to negative 5.2 from positive 0.7.
Capacity use slid to negative 6.4 from negative 4.9, the Fed reported. Volume of new orders decreased to negative 16.1 from negative 12.2, while growth rate of orders index narrowed to negative 15.3 from negative 16.3.
Unfilled orders improved to negative 13.8 from negative 17.3 in the prior survey, while the volume of shipments fell to negative 8.7 from negative 3.3, and delivery times gained to negative 1.2 from negative 3.8. The materials inventory index decreased to negative 4.2 from negative 1.0, the finished goods inventory climbed to positive 1.8 from negative 3.8. Prices paid for raw materials slid to negative 9.4 from negative 1.7, while prices received for finished goods fell to negative 9.8 from negative 4.4. Wages and benefits decreased to 15.6 from 16.8, while the employment index reversed to negative 1.8 from positive 1.3, and the hours worked index decreased to negative 5.3 from negative 1.6, and the capital expenditures index rose to zero from negative 4.8.
As for future outlook (six months from now), the general business conditions index gained to 12.8 from 11.8 last month, the production index grew to 36.2 from 24.9, while capacity use soared to 32.9 from 17.4, the Fed reported. Volume of new orders increased to 31.0 from 25.3, while growth rate of orders index jumped to 28.3 from 12.8.
Unfilled orders rebounded to negative 1.3 from negative 6.1, while the volume of shipments gained to 31.0 from 24.0, and delivery times grew to positive 0.4 from negative 12.5. Materials inventories climbed to negative 1.8 from negative 3.9, and the finished goods inventory decreased to negative 8.3 from negative 6.8.
Prices paid for raw materials rose to 14.0 from 5.9, while prices received for finished goods climbed to 6.5 from 3.9. Wages and benefits decreased to 34.2 from 37.2, the employment index surged to 18.3 from 9.2, while the hours worked index increased to positive 4.2 from negative 0.8, and the capital expenditures index fell to 7.5 from 14.0.
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.
