NEW YORK - Texas factory activity, as measured by the production index, rose slower in June than 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 17.5 in June from negative 7.4 in May.
The production index slid to 5.6 from 12.7, while capacity use decreased to negative 0.8 from positive 11.1, the Fed reported. Volume of new orders gained to 6.4 from 1.1, while growth rate of orders index reversed to positive 2.3 from negative 5.4.
Unfilled orders narrowed to negative 6.2 from negative 7.8 in the prior survey, while the volume of shipments slid to 0.4 from 8.0, and delivery times improved to 1.2 from zero. The materials inventory index grew to positive 6.5 from negative 0.1, the finished goods inventory increased to zero from negative 4.3. Prices paid for raw materials fell to 31.1 from 42.3, while prices received for finished goods increased to 10.0 from 8.8. Wages and benefits slipped to 15.5 from 18.5, while the employment index decreased to 5.3 from 11.6, and the average workweek index fell to 1.5 from 13.2, and the capital expenditures index slid to 2.4 from 8.7.
As for future outlook (six months from now), the general business conditions index fell to 2.9 from 7.9 last month, the production index decreased to 37.1 from 41.3, while capacity use dropped to 27.4 from 43.5, the Fed reported. Volume of new orders slipped to 28.0 from 40.8, while growth rate of orders index dropped to 22.1 from 27.7.
Unfilled orders slumped to negative 7.3 from positive 15.4, while the volume of shipments slid to 35.1 from 43.7, and delivery times dropped to negative 6.1 from positive 2.2. Materials inventories slid to 3.6 from 9.8, and the finished goods inventory rebounded to positive 2.4 from negative 1.1.
Prices paid for raw materials decreased to 45.1 from 51.6, while prices received for finished goods fell to 22.2 from 25.0. Wages and benefits gained to 33.5 from 30.6, the employment index plunged to 14.5 from 28.3, while the average workweek index fell to 7.3 from 10.9, and the capital expenditures index increased to 21.7 from 18.5.
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.
