Dallas Fed Manufacturing Survey: Activity Weakens

Texas factory activity, as measured by the production index, "declined in April," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.

The general business activity index crept to negative 16.0 in April from negative 17.4 in March.

The production index narrowed to negative 4.7 from negative 5.2.

Capacity use slid to negative 10.4 from negative 6.4, the Fed reported. Volume of new orders increased to negative 14.0 from negative 16.1, while growth rate of orders index widened to negative 15.5 from negative 15.3.

Unfilled orders declined to negative 15.1 from negative 13.8 in the prior survey, while the volume of shipments rose to negative 5.6 from negative 8.7, and delivery times dropped to negative 5.3 from negative 1.2. The materials inventory index decreased to negative 6.0 from negative 4.2, the finished goods inventory slumped to negative 7.5 from positive 1.8. Prices paid for raw materials slid to negative 11.2 from negative 9.4, while prices received for finished goods narrowed to negative 7.7 from negative 9.8. Wages and benefits increased to 16.5 from 15.6, while the employment index reversed to positive 1.8 from negative 1.8, and the hours worked index increased to negative 5.0 from negative 5.3, and the capital expenditures index rose to 3.3 from zero.

As for future outlook (six months from now), the general business conditions index plunged to negative 5.9 from positive 3.0 last month, the production index slid to 28.2 from 36.2, while capacity use fell to 22.7 from 32.9, the Fed reported. Volume of new orders dipped to 30.6 from 31.0, while growth rate of orders index dropped to 19.6 from 28.3.

Unfilled orders slipped to negative 4.1 from negative 1.3, while the volume of shipments inched down to 30.8 from 31.0, and delivery times fell to negative 8.7 from positive 0.4. Materials inventories slipped to negative 9.9 from negative 1.8, and the finished goods inventory improved to negative 7.7 from negative 8.3.

Prices paid for raw materials rose to 20.4 from 14.0, while prices received for finished goods climbed to 9.8 from 6.5. Wages and benefits remained at 34.2, the employment index sank to 12.4 from 18.3, while the hours worked index held at 4.2, and the capital expenditures index rose to 8.9 from 7.5.

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.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER