Texas factory activity, as measured by the production index, "increased again in October," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index slipped to 10.5 in October from 10.8 in September.
The production index dropped to 13.7 from 17.6.
Capacity use slid to 18.1 from 20.2, the Fed reported. Volume of new orders increased to 14.2 from 7.5, while growth rate of orders index reversed to positive 7.4 from negative 3.2.
Unfilled orders gained to positive 0.8 from negative 0.9 in the prior survey, while the volume of shipments fell to 12.8 from negative 0.9, and delivery times rose to 4.2 from 1.5. The materials inventory index increased to positive 9.4 from negative 0.7, the finished goods inventory climbed to positive 4.5 from negative 6.8. Prices paid for raw materials crept to 19.7 from 19.5, while prices received for finished goods inched up to 7.1 from 7.0. Wages and benefits declined to 24.5 from 26.2, while the employment index dipped to 10.2 from 10.6, and the hours worked index decreased to 8.3 from 9.5, and the capital expenditures index jumped to 10.8 from 4.4.
As for future outlook (six months from now), the general business conditions index grew to 13.3 from 12.1 last month, the production index increased to 41.2 from 40.0, while capacity use slid to 33.9 from 34.7, the Fed reported. Volume of new orders rose to 38.1 from 34.6, while growth rate of orders index decreased to 22.3 from 30.8.
Unfilled orders crept to 3.5 from 3.4, while the volume of shipments dropped to 34.2 from 38.6, and delivery times gained to 1.7 from 0.5. Materials inventories climbed to 6.7 from 5.3, and the finished goods inventory remained at negative 1.0.
Prices paid for raw materials fell to 31.4 from 36.4, while prices received for finished goods dropped to 15.2 from 29.3. Wages and benefits increased to 40.8 from 40.7, the employment index surged to 31.7 from 18.4, while the hours worked index dropped to 6.3 from 11.6, and the capital expenditures index declined to 20.6 from 23.5.
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.
