NEW YORK - Texas factory activity, as measured by the production index, was nearly flat in August, 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 11.4 in August from negative 2.0 in July.
The production index fell to 1.1 from 10.8, while capacity use reversed to negative 2.8 from positive 0.6, the Fed reported. Volume of new orders dropped to 4.8 from 16.0, while growth rate of orders index decreased to negative 4.6 from positive 2.5.
Unfilled orders slumped to negative 8.6 from positive 8.2 in the prior survey, while the volume of shipments fell to 6.7 from 7.8, and delivery times decreased to negative 5.3 from positive 3.5. The materials inventory index grew to 7.3 from 5.4, the finished goods inventory fell to negative 6.4 from zero. Prices paid for raw materials slid to 23.2 from 34.3, while prices received for finished goods declined to negative 0.5 from positive 4.6. Wages and benefits dipped to 15.7 from 18.4, while the employment index slumped to 5.4 from 12.1, and the average workweek index fell to negative 2.2 from positive 7.9, and the capital expenditures index reversed to positive 8.4 from negative 2.3.
As for future outlook (six months from now), the general business conditions index slid to 2.9 from 3.7 last month, the production index decreased to 25.4 from 38.8, while capacity use fell to 22.5 from 30.5, the Fed reported. Volume of new orders dipped to 26.7 from 28.5, while growth rate of orders index declined to 17.2 from 22.6.
Unfilled orders dipped to 1.1 from 1.2, while the volume of shipments grew to 32.7 from 31.7, and delivery times dropped to negative 8.7 from negative 8.2. Materials inventories slid to negative 7.5 from negative 2.3, and the finished goods inventory dropped to negative 18.3 from negative 3.5.
Prices paid for raw materials decreased to 25.3 from 47.6, while prices received for finished goods fell to 16.8 from 20.9. Wages and benefits gained to 34.2 from 29.1, the employment index surged to 11.6 from 2.3, while the average workweek index fell to 2.1 from 2.3, and the capital expenditures index increased to 20.0 from 10.6.
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.
