NEW YORK - Texas factory activity, as measured by the production index, rose in May, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index slipped to negative 7.4 in May from positive 10.5 in April.
The production index grew to 12.7 from 8.1, while capacity use increased to 11.1 from 9.7, the Fed reported. Volume of new orders dipped to 1.1 from 4.3, while growth rate of orders index fell to negative 5.4 from positive 5.0.
Unfilled orders slipped to negative 7.8 from negative 3.1 in the prior survey, while the volume of shipments grew to 8.0 from 7.8, and delivery times improved to zero from negative 3.3. The materials inventory index fell to negative 0.1 from positive 3.7, the finished goods inventory reversed to negative 4.3 from positive 4.2. Prices paid for raw materials fell to 42.3 from 56.6, while prices received for finished goods decreased to 8.8 from 23.9. Wages and benefits gained to 18.5 from 15.9, while the employment index decreased to 11.6 from 13.4, and the average workweek index rose to positive 13.2 from negative 0.7, and the capital expenditures index rose to 8.7 from 7.5.
As for future outlook (six months from now), the general business conditions index fell to 7.9 from 16.9 last month, the production index decreased to 41.3 from 50.4, while capacity use dipped to 43.5 from 43.9, the Fed reported. Volume of new orders slipped to 40.8 from 42.2, while growth rate of orders index dropped to 27.7 from 29.4.
Unfilled orders surged to 15.4 from 5.4, while the volume of shipments slid to 43.7 from 46.1, and delivery times grew to positive 2.2 from negative 1.1. Materials inventories slid to 9.8 from 12.0, and the finished goods inventory fell to negative 1.1 from negative 1.0.
Prices paid for raw materials decreased to 51.6 from 58.7, while prices received for finished goods fell to 25.0 from 34.1. Wages and benefits slumped to 30.6 from 35.7, the employment index held at 28.3, while the average workweek index fell to 10.9 from 14.0, and the capital expenditures index decreased to 18.5 from 22.0.
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.
