NEW YORK - “Texas factory activity expanded in January,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index climbed to 8.3 in January from 3.2 in December.
The production index rose to 7.4 from 0.1, while capacity use increased to 6.3 from 5.8, the Fed reported. Volume of new orders jumped to 26.8 from 4.3, while growth rate of orders index increased to 11.4 from 4.3.
Unfilled orders reversed to positive 2.3 from negative 1.3 in the prior survey, while the volume of shipments surged to positive 11.4 from negative 0.8, and delivery times improved to negative 2.2 from negative 3.2. The materials inventory index narrowed to negative 10.0 from negative 21.5, the finished goods inventory bounced to negative 18.9 from negative 19.8. Prices paid for raw materials moved to 32.6 from 28.2, while prices received for finished goods improved to positive 0.1 from negative 2.6. Wages and benefits increased to 7.8 from 1.1, while the employment index dipped to negative 4.5 from negative 4.0, and the average workweek index rose to positive 1.1 from negative 9.7, and the capital expenditures index rose to negative 7.9 from negative 15.4.
As for future outlook (six months from now), the general business conditions index slid to 21.4 from 31.9 last month, the production index increased to 51.8 from 45.8, while capacity use grew to 45.3 from 41.2, the Fed reported. Volume of new orders gained to 51.7 from 50.5, while growth rate of orders index slipped to 35.1 from 35.4.
Unfilled orders decreased to 9.0 from 14.3, while the volume of shipments gained to 50.5 from 43.8, and delivery times declined to negative 2.2 from zero. Materials inventories dropped to 4.5 from positive 6.6, and the finished goods inventory dipped to negative 6.7 from negative 5.5.
Prices paid for raw materials increased to 57.3 from 53.8, while prices received for finished goods rose to 20.7 from 16.5. Wages and benefits climbed to 27.1 from 26.6, the employment index fell to 21.4 from 26.4, while the average workweek index slid to 23.6 from 25.5, and the capital expenditures index rose to 18.0 from 11.3.
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.
