Texas factory activity, as measured by the production index, "held steady in July," according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index narrowed to negative 1.3 in July from negative 18.3 in June.
The production index improved to positive 0.4 in July from negative 7.0 in June.
Capacity use rose to positive 0.3 from negative 9.3, the Fed reported. Volume of new orders narrowed to negative 8.0 from negative 14.2, while growth rate of orders index climbed to negative 9.7 from negative 18.6.
Unfilled orders rose to negative 4.6 from negative 13.6 in the prior survey, while the volume of shipments climbed to positive 0.1 from negative 8.6, and delivery times rebounded to negative 2.8 from negative 7.6. The materials inventory index widened to negative 10.4 from negative 6.0, the finished goods inventory decreased to negative 9.9 from negative 4.4. Prices paid for raw materials slid to 7.6 from 12.6, while prices received for finished goods widened to negative 5.7 from negative 5.2. Wages and benefits declined to 10.5 from 21.6, while the employment index gained to negative 2.6 from negative 11.5, and the hours worked index narrowed to negative 0.2 from negative 12.8, and the capital expenditures index reversed to positive 4.8 from negative 2.1.
As for future outlook (six months from now), the general business conditions index surged to 18.4 from 2.6 last month, the production index rose to 45.2 from 27.1, while capacity use grew to 40.9 from 21.9, the Fed reported. Volume of new orders increased to 42.8 from 26.6, while growth rate of orders index gained to 34.7 from 20.3.
Unfilled orders gained to 4.3 from 2.1, while the volume of shipments rose to 38.0 from 27.6, and delivery times increased to 0.8 from 0.5. Materials inventories reversed to positive 5.9 from negative 10.2, and the finished goods inventory climbed to positive 5.9 from negative 10.2.
Prices paid for raw materials dipped to 14.7 from 14.8, while prices received for finished goods decreased to 5.9 from 6.7. Wages and benefits fell to 30.0 from 31.6, the employment index gained to 18.8 from 12.2, while the hours worked index rose to 10.0 from 4.6, and the capital expenditures index grew to 18.8 from 7.7.
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.
