Texas factory activity, as measured by the production index, slowed in August, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index improved to negative 1.6 in August from negative 13.2 in July.
The production index dipped to 6.4 from 12.0, while capacity use decreased to 1.7 from 8.7, the Fed reported. Volume of new orders declined to 0.2 from 1.4, while growth rate of orders index slipped to negative 8.7 from negative 3.1.
Unfilled orders dropped to negative 9.2 from negative 1.6 in the prior survey, while the volume of shipments reversed to negative 2.3 from positive 7.4, and delivery times slipped to negative 9.9 from positive 1.1. The materials inventory index jumped to positive 8.9 from negative 3.0, the finished goods inventory reversed to positive 6.7 from negative 8.0. Prices paid for raw materials gained to 10.9 from 3.0, while prices received for finished goods improved to negative 1.6 from negative 5.5. Wages and benefits fell to 13.5 from 22.9, while the employment index rose to 14.2 from 11.8, and the hours worked index dropped to negative 0.9 from positive 4.1, and the capital expenditures index grew to positive 3.2 from negative 0.8.
As for future outlook (six months from now), the general business conditions index rose to negative 5.1 from negative 7.3 last month, the production index increased to 28.6 from 27.1, while capacity use gained to 27.5 from 21.8, the Fed reported. Volume of new orders rose to 27.1 from 20.1, while growth rate of orders index increased to 15.3 from 10.7.
Unfilled orders improved to negative 7.9 from negative 11.5, while the volume of shipments gained to 33.8 from 24.3, and delivery times declined to negative 11.3 from negative 6.9. Materials inventories increased to negative 2.3 from 11.5, and the finished goods inventory rose to negative 3.5 from negative 8.3.
Prices paid for raw materials jumped to 35.7 from 32.2, while prices received for finished goods climbed to 21.6 from 13.8. Wages and benefits grew to 35.8 from 35.0, the employment index rose to 13.8 from 9.2, while the hours worked index fell to 0.7 from 2.8, and the capital expenditures index rose to 17.3 from 10.5.
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.
