NEW YORK - Texas factory activity, as measured by the production index, improved in September, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index declined to negative 14.4 in September from negative 11.4 in August.
The production index grew to 5.9 from 1.1, while capacity use narrowed to negative 1.3 from negative 2.8, the Fed reported. Volume of new orders dropped to 3.6 from 4.8, while growth rate of orders index increased to positive 0.6 from negative 4.6.
Unfilled orders climbed to negative 5.1 from negative 8.6 in the prior survey, while the volume of shipments rose to 9.4 from 6.7, and delivery times increased to negative 4.3 from negative 5.3. The materials inventory index slid to 2.1 from 7.3, the finished goods inventory held at negative 6.4. Prices paid for raw materials inched up to 23.5 from 23.2, while prices received for finished goods reversed to positive 3.9 from negative 0.5. Wages and benefits jumped to 17.4 from 15.7, while the employment index soared to 13.4 from 5.4, and the average workweek index grew to positive 5.5 from negative 2.2, and the capital expenditures index slipped to 1.1 from 8.4.
As for future outlook (six months from now), the general business conditions index slid to negative 1.5 from positive 2.9 last month, the production index decreased to 24.3 from 25.4, while capacity use rose to 24.6 from 22.5, the Fed reported. Volume of new orders dipped to 26.3 from 26.7, while growth rate of orders index declined to 16.9 from 17.2.
Unfilled orders gained to 3.3 from 1.1, while the volume of shipments fell to 26.1 from 32.7, and delivery times narrowed to negative 7.6 from negative 8.7. Materials inventories rose to negative 4.4 from negative 7.5, and the finished goods inventory improved to negative 17.4 from negative 18.3.
Prices paid for raw materials increased to 37.4 from 25.3, while prices received for finished goods grew to 20.6 from 16.8. Wages and benefits slipped to 32.4 from 34.2, the employment index increased to 13.0 from 11.6, while the average workweek index rose to 4.3 from 2.1, and the capital expenditures index decreased to 13.3 from 20.0.
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.
