NEW YORK - Texas factory activity, as measured by the production index, was nearly flat in January, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index slumped to 10.9 in January from 15.8 in December.
The production index dropped to 0.2 from 15.3, while capacity use declined to 4.1 from 18.8, the Fed reported. Volume of new orders increased to 12.7 from 11.3, while growth rate of orders index gained to 8.3 from 5.0.
Unfilled orders decreased to negative 3.1 from negative 2.2 in the prior survey, while the volume of shipments slid to 4.6 from 16.0, and delivery times fell to negative 4.1 from negative 2.1. The materials inventory index widened to negative 1.0 from negative 0.7, the finished goods inventory dropped to negative 8.3 from negative 1.1. Prices paid for raw materials grew to 61.6 from 42.6, while prices received for finished goods increased to 19.4 from 11.9. Wages and benefits jumped to 14.6 from 9.5, while the employment index decreased to 9.3 from 16.1, and the average workweek index slipped to 3.6 from 14.3, and the capital expenditures index slumped to 1.0 from 4.2.
As for future outlook (six months from now), the general business conditions index gained to 39.1 from 35.0 last month, the production index increased to 54.9 from 47.7, while capacity use grew to 52.5 from 48.0, the Fed reported. Volume of new orders jumped to 53.7 from 47.4, while growth rate of orders index increased to 42.6 from 42.0.
Unfilled orders climbed to 15.6 from 14.9, while the volume of shipments rose to 53.1 from 50.5, and delivery times declined to zero from 3.2. Materials inventories slipped to 11.5 from 28.8, and the finished goods inventory slumped to 5.2 from 22.3.
Prices paid for raw materials increased to 56.2 from 46.2, while prices received for finished goods rose to 34.4 from 28.7. Wages and benefits dipped to 31.3 from 34.5, the employment index rose to 38.6 from 36.2, while the average workweek index grew to 28.1 from 22.3, and the capital expenditures index decreased to 20.9 from 23.4.
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.
