NEW YORK - “Texas factory activity continued to expand in February,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index slumped to 0.1 in February from 8.3 in January.
The production index fell to 2.3 from 7.4, while capacity use decreased to zero from 6.3, the Fed reported. Volume of new orders slumped to negative 6.0 from positive 26.8, while growth rate of orders index decreased to negative 3.3 from positive 11.4.
Unfilled orders reversed to negative 2.4 from positive 2.3 in the prior survey, while the volume of shipments dropped to negative 1.1 from positive 11.4, and delivery times improved to positive 3.3 from negative 2.2. The materials inventory index narrowed to negative 9.9 from negative 10.0, the finished goods inventory bounced to negative 6.6 from negative 18.9. Prices paid for raw materials moved to 40.9 from 32.6, while prices received for finished goods slipped to negative 0.8 from positive 0.1. Wages and benefits decreased to 6.6 from 7.8, while the employment index dipped to negative 5.2 from negative 4.5, and the average workweek index fell to negative 5.5 from positive 1.1, and the capital expenditures index slid to negative 8.8 from negative 7.9.
As for future outlook (six months from now), the general business conditions index slid to 21.1 from 21.4 last month, the production index decreased to 40.0 from 51.8, while capacity use declined to 40.3 from 45.3, the Fed reported. Volume of new orders dipped to 48.9 from 51.7, while growth rate of orders index climbed to 38.7 from 35.1.
Unfilled orders increased to 16.6 from 9.0, while the volume of shipments dropped to 41.9 from 50.5, and delivery times reversed to positive 2.2 from negative 2.2. Materials inventories gained to 5.6 from 4.5, and the finished goods inventory improved to negative 1.1 from negative 6.7.
Prices paid for raw materials decreased to 47.8 from 57.3, while prices received for finished goods fell to 16.6 from 20.7. Wages and benefits inched up to 27.2 from 27.1, the employment index rose to 22.5 from 21.4, while the average workweek index grew to 28.8 from 23.6, and the capital expenditures index fell to 6.8 from 18.0.
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.
