NEW YORK - Texas factory activity, as measured by the production index, was better in August, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index declined to negative 17.7 in September from negative 13.5 in August.
The production index gained to positive 4.0 from negative 0.1, while capacity use reversed to positive 3.9 from negative 3.1, the Fed reported. Volume of new orders narrowed to negative 3.0 from negative 9.3, while growth rate of orders index jumped to zero from negative 13.2.
Unfilled orders decreased to negative 14.0 from negative 4.6 in the prior survey, while the volume of shipments climbed to negative 1.0 from negative 3.4, and delivery times fell to negative 9.0 from negative 4.0. The materials inventory index narrowed to negative 3.0 from negative 9.1, the finished goods inventory increased to positive 1.0 from negative 8.2. Prices paid for raw materials grew to 24.4 from 24.3, while prices received for finished goods increased to positive 0.5 from negative 5.7. Wages and benefits crept up to 7.2 from 7.1, while the employment index gained to positive 1.8 from negative 5.1, and the average workweek index narrowed to negative 1.0 from negative 6.0, and the capital expenditures index dropped to negative 12.1 from positive 1.0.
As for future outlook (six months from now), the general business conditions index reversed to positive 5.2 from negative 4.3 last month, the production index increased to 33.1 from 24.2, while capacity use grew to 25.3 from 23.3, the Fed reported. Volume of new orders jumped to 35.8 from 20.8, while growth rate of orders index increased to 22.5 from 15.1.
Unfilled orders climbed to 8.2 from 3.1, while the volume of shipments rose to 30.8 from 23.6, and delivery times narrowed to negative 5.1 from negative 7.2. Materials inventories improved to negative 4.1 from negative 9.3, and the finished goods inventory climbed to negative 10.3 from negative 12.5.
Prices paid for raw materials increased to 31.9 from 23.7, while prices received for finished goods rose to 19.8 from 7.2. Wages and benefits slipped to 25.0 from 30.9, the employment index rose to 8.2 from 1.0, while the average workweek index grew to 5.2 from 2.0, and the capital expenditures index increased to 6.2 from 3.1.
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.
