NEW YORK - Texas factory activity, as measured by the production index, was better in October, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index increased to positive 2.6 in October from negative 17.7 in September.
The production index gained to 6.9 from 4.0, while capacity use reversed to negative 2.3 from positive 3.9, the Fed reported. Volume of new orders widened to negative 4.3 from negative 3.0, while growth rate of orders index dipped to negative 2.5 from zero.
Unfilled orders increased to negative 6.3 from negative 14.0 in the prior survey, while the volume of shipments slipped to negative 2.3 from negative 1.0, and delivery times fell to negative 11.5 from negative 9.0. The materials inventory index narrowed to negative 1.9 from negative 3.0, the finished goods inventory declined to negative 12.5 from positive 1.0. Prices paid for raw materials grew to 29.9 from 24.4, while prices received for finished goods decreased to negative 3.5 from positive 0.5. Wages and benefits crept up to 10.6 from 7.2, while the employment index dropped to negative 4.1 from positive 1.8, and the average workweek index slid to negative 7.7 from negative 1.0, and the capital expenditures index climbed to negative 1.9 from negative 12.1.
As for future outlook (six months from now), the general business conditions index gained to 14.2 from 5.2 last month, the production index increased to 36.2 from 33.1, while capacity use grew to 36.0 from 25.3, the Fed reported. Volume of new orders jumped to 40.2 from 35.8, while growth rate of orders index increased to 35.4 from 22.5.
Unfilled orders climbed to 10.0 from 8.2, while the volume of shipments rose to 34.9 from 30.8, and delivery times narrowed to negative 5.0 from negative 5.1. Materials inventories improved to positive 2.0 from negative 4.1, and the finished goods inventory climbed to negative 5.9 from negative 10.3.
Prices paid for raw materials increased to 35.7 from 31.9, while prices received for finished goods fell to 11.0 from 19.8. Wages and benefits slipped to 23.8 from 25.0, the employment index rose to 13.0 from 8.2, while the average workweek index grew to 17.9 from 5.2, and the capital expenditures index increased to 10.1 from 6.2.
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.
