Texas factory activity, as measured by the production index, "increased again in August, albeit at a slower pace than in recent months," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index slid to 7.1 in August from 12.7 in July.
The production index fell to 6.8 from 19.1.
Capacity use slipped to 3.6 from 18.0, the Fed reported. Volume of new orders decreased to 2.2 from 13.0, while growth rate of orders index dropped to negative 9.6 from positive 15.2.
Unfilled orders gained to 3.8 from 3.6 in the prior survey, while the volume of shipments declined to 6.4 from 22.8, and delivery times rose to 4.8 from 3.3. The materials inventory index rebounded to zero from negative 1.1, the finished goods inventory narrowed to negative 6.2 from negative 7.0. Prices paid for raw materials climbed to 26.4 from 25.4, while prices received for finished goods rose to 9.1 from 7.3. Wages and benefits gained to 23.7 from 18.8, while the employment index dipped to 11.1 from 11.4, and the hours worked index decreased to 2.9 from 6.3, and the capital expenditures index slid to 6.6 from 13.3.
As for future outlook (six months from now), the general business conditions index fell to 18.7 from 19.8 last month, the production index increased to 44.5 from 40.1, while capacity use slid to 39.8 from 40.2, the Fed reported. Volume of new orders gained to 45.3 from 41.2, while growth rate of orders index decreased to 30.0 from 32.0.
Unfilled orders fell to 4.5 from 10.3, while the volume of shipments climbed to 44.6 from 43.8, and delivery times reversed to negative 1.6 from positive 2.1. Materials inventories climbed to zero from negative 3.7, and the finished goods inventory remained at negative 1.8.
Prices paid for raw materials jumped to 43.5 from 34.2, while prices received for finished goods slipped to 22.2 from 24.7. Wages and benefits decreased to 43.8 from 46.0, the employment index grew to 24.1 from 20.4, while the hours worked index rose to 11.7 from 9.8, and the capital expenditures index increased to 16.3 from 14.8.
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.
