NEW YORK - “Texas factory activity showed its first signs of growth in more than a year,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index reversed to positive 0.3 in November from negative 3.3 in October.
The production index rose to positive 5.9 from negative 8.0, while capacity use increased to positive 1.6 from negative 11.3, the Fed reported. Volume of new orders soared to positive 10.5 from negative 2.8, while growth rate of orders index reversed to positive 10.0 from negative 9.6.
Unfilled orders narrowed to negative 7.3 from negative 18.7 in the prior survey, while the volume of shipments reversed to positive 4.7 from negative 16.1, and delivery times declined to negative 7.6 from negative 6.6. The materials inventory index widened to negative 30.4 from negative 24.2, the finished goods inventory worsened to negative 21.7 from negative 16.5. Prices paid for raw materials moved to 22.0 from 15.0, while prices received for finished goods improved to negative 12.3 from negative 21.5. Wages and benefits slid to negative 2.2 from positive 1.1, while the number of employees index fell to negative 15.1 from negative 11.9, and the average workweek index narrowed to negative 6.5 from negative 16.6, and the capital expenditures index fell to negative 15.5 from negative 12.1.
As for future outlook (six months from now), the general business conditions index dipped to 15.7 from 16.7 last month, the production index decreased to 33.0 from 39.1, while capacity use fell to 28.9 from 37.3, the Fed reported. Volume of new orders slid to 35.6 from 36.7, while growth rate of orders index dropped to 26.1 from 31.9.
Unfilled orders slid to 1.1 from 4.4, while the volume of shipments decreased to 31.2 from 38.6, and delivery times improved to negative 3.3 from negative 4.5. Materials inventories declined to negative 4.4 from negative 2.3, and the finished goods inventory slipped to negative 12.1 from negative 7.8.
Prices paid for raw materials increased to 31.9 from 30.0, while prices received for finished goods reversed to positive 12.1 from negative 3.4. Wages and benefits jumped to 15.0 from 12.8, the number of employees index fell to 8.8 from 16.7, while the average workweek index fell to 9.9 from 11.1, and the capital expenditures index skidded to negative 5.6 from zero.
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.
