NEW YORK - Texas factory activity, as measured by the production index, expanded in October, but at a slightly slower pace than in September, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index reversed to positive 2.3 in October from negative 14.4 in September.
The production index slid to 4.1 from 5.9, while capacity use increased to positive 2.8 from negative 1.3, the Fed reported. Volume of new orders gained to 8.3 from 3.6, while growth rate of orders index decreased to negative 0.9 from positive 0.6.
Unfilled orders slipped to negative 5.7 from negative 5.1 in the prior survey, while the volume of shipments fell to 2.7 from 9.4, and delivery times declined to negative 6.7 from negative 4.3. The materials inventory index slid to negative 0.1 from positive 2.1, the finished goods inventory dipped to negative 6.7 from negative 6.4. Prices paid for raw materials slipped to 19.1 from 23.5, while prices received for finished goods reversed to negative 0.6 from positive 3.9. Wages and benefits slumped to 8.9 from 17.4, while the employment index gained to 15.1 from 13.4, and the average workweek index grew to 7.1 from 5.5, and the capital expenditures index surged to 7.8 from 1.1.
As for future outlook (six months from now), the general business conditions index soared to positive 14.7 from negative 1.5 last month, the production index increased to 43.2 from 24.3, while capacity use rose to 42.5 from 24.6, the Fed reported. Volume of new orders jumped to 39.7 from 26.3, while growth rate of orders index increased to 23.4 from 16.9.
Unfilled orders gained to 8.0 from 3.3, while the volume of shipments rose to 39.8 from 26.1, and delivery times narrowed to negative 2.3 from negative 7.6. Materials inventories rose to negative 3.4 from negative 4.4, and the finished goods inventory improved to negative 6.8 from negative 17.4.
Prices paid for raw materials decreased to 36.3 from 37.4, while prices received for finished goods slid to 20.5 from 20.6. Wages and benefits dipped to 32.1 from 32.4, the employment index increased to 19.3 from 13.0, while the average workweek index rose to 5.7 from 4.3, and the capital expenditures index increased to 18.3 from 13.3.
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.
