NEW YORK - “Texas factory activity expanded for the fifth straight month in March,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index rebounded to positive 7.2 in March from negative 0.1 in February.
The production index grew to 8.7 from 2.3, while capacity use surged to 14.9 from zero, the Fed reported. Volume of new orders jumped to positive 10.9 from negative 6.0, while growth rate of orders index reversed to positive 8.6 from negative 3.3.
Unfilled orders increased to positive 7.4 from negative 2.4 in the prior survey, while the volume of shipments gained to positive 1.6 from negative 1.1, and delivery times dropped to negative 7.8 from positive 3.3. The materials inventory index increased to positive 7.8 from negative 9.9, the finished goods inventory bounced to zero from negative 6.6. Prices paid for raw materials dipped to 39.3 from 40.9, while prices received for finished goods slipped to negative 3.3 from negative 0.8. Wages and benefits narrowed to negative 4.5 from negative 6.6, while the employment index reversed to positive 2.8 from negative 5.2, and the average workweek index soared to positive 13.5 from negative 5.5, and the capital expenditures index improved to negative 7.8 from negative 8.8.
As for future outlook (six months from now), the general business conditions index slid to 18.4 from 21.1 last month, the production index decreased to 34.0 from 40.0, while capacity use declined to 32.1 from 40.3, the Fed reported. Volume of new orders slumped to 29.5 from 48.9, while growth rate of orders index slid to 28.5 from 38.7.
Unfilled orders decreased to 5.8 from 16.6, while the volume of shipments dropped to 38.1 from 41.9, and delivery times fell to zero from 2.2. Materials inventories declined to negative 4.6 from positive 5.6, and the finished goods inventory improved to positive 3.4 from negative 1.1.
Prices paid for raw materials decreased to 40.3 from 47.8, while prices received for finished goods fell to 11.4 from 16.6. Wages and benefits rose to 31.8 from 27.2, the employment index slid to 12.5 from 22.5, while the average workweek index dropped to 25.3 from 28.8, and the capital expenditures index inched up to 6.9 from 6.8.
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.
