Texas factory activity, as measured by the production index, "activity increased in August," according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index widened to negative 6.2 in August from negative 1.3 in July.
The production index improved to 4.5 in August from 0.4 in July.
Capacity use rose to 0.9 from 0.3, the Fed reported. Volume of new orders reversed to positive 5.3 from negative 8.0, while growth rate of orders index climbed to positive 2.1 from negative 9.7.
Unfilled orders rose to negative 4.5 from negative 4.6 in the prior survey, while the volume of shipments increased to 9.9 from 0.1, and delivery times rebounded to positive 5.8 from negative 2.8. The materials inventory index narrowed to negative 3.8 from negative 10.4, the finished goods inventory gained to negative 6.3 from negative 9.9. Prices paid for raw materials rose to 14.1 from 7.6, while prices received for finished goods climbed to negative 1.3 from negative 5.7. Wages and benefits grew to 13.7 from 10.5, while the employment index slid to negative 5.0 from negative 2.6, and the hours worked index fell to negative 4.5 from negative 0.2, and the capital expenditures index dropped to negative 5.7 from positive 4.8.
As for future outlook (six months from now), the general business conditions index declined to 7.0 from 18.4 last month, the production index fell to 32.8 from 45.2, while capacity use dropped to 30.6 from 40.9, the Fed reported. Volume of new orders decreased to 38.6 from 42.8, while growth rate of orders index fell to 27.2 from 34.7.
Unfilled orders dipped to 3.4 from 4.3, while the volume of shipments slid to 30.0 from 38.0, and delivery times decreased to negative 1.3 from positive 0.8. Materials inventories dropped to negative 1.9 from positive 5.9, and the finished goods inventory slipped to 4.7 from 5.9.
Prices paid for raw materials gained to 18.0 from 14.7, while prices received for finished goods increased to 7.6 from 5.9. Wages and benefits rose to 38.1 from 30.0, the employment index gained to 21.7 from 18.8, while the hours worked index slid to 9.2 from 10.0, and the capital expenditures index declined to 14.7 from 18.8.
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.
