NEW YORK - Texas factory activity, as measured by the production index, declined in November, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index climbed to 3.2 in November from 2.3 in October.
The production index slid to negative 5.1 from positive 4.1, while capacity use decreased to negative 10.2 from positive 2.8, the Fed reported. Volume of new orders dropped to negative 5.1 from positive 8.3, while growth rate of orders index decreased to negative 6.8 from negative 0.9.
Unfilled orders slipped to negative 6.5 from negative 5.7 in the prior survey, while the volume of shipments fell to negative 1.1 from positive 2.7, and delivery times improved to negative 5.5 from negative 6.7. The materials inventory index slid to negative 1.9 from negative 0.1, the finished goods inventory dipped to negative 9.9 from negative 6.7. Prices paid for raw materials slipped to 19.0 from 19.1, while prices received for finished goods reversed to positive 1.1 from negative 0.6. Wages and benefits jumped to 11.0 from 8.9, while the employment index dropped to 9.0 from 15.1, and the average workweek index grew to 7.3 from 7.1, and the capital expenditures index slumped to 3.3 from 7.8.
As for future outlook (six months from now), the general business conditions index slid to 9.7 from 14.7 last month, the production index decreased to 35.1 from 43.2, while capacity use fell to 31.1 from 42.5, the Fed reported. Volume of new orders slumped to 32.7 from 39.7, while growth rate of orders index increased to 26.1 from 23.4.
Unfilled orders dipped to 6.8 from 8.0, while the volume of shipments slid to 32.6 from 39.8, and delivery times reversed to positive 1.1 from negative 2.3. Materials inventories surged to positive 12.7 from negative 3.4, and the finished goods inventory improved to positive 1.2 from negative 6.8.
Prices paid for raw materials decreased to 28.4 from 36.3, while prices received for finished goods slid to 13.8 from 20.5. Wages and benefits gained to 36.6 from 32.1, the employment index decreased to 13.6 from 19.3, while the average workweek index rose to 11.3 from 5.7, and the capital expenditures index decreased to 11.4 from 18.3.
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.
