NEW YORK - Texas factory activity, as measured by the production index, was nearly flat in February, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index jumped to 17.5 in February from 10.9 in January.
The production index surged to 9.7 from 0.2, while capacity use increased to 9.2 from 4.1, the Fed reported. Volume of new orders gained to 14.7 from 12.7, while growth rate of orders index slowed to 6.4 from 8.3.
Unfilled orders reversed to positive 1.3 from negative 3.1 in the prior survey, while the volume of shipments grew to 7.2 from 4.6, and delivery times improved to negative 3.2 from negative 4.1. The materials inventory index reversed to positive 6.0 from negative 1.0, the finished goods inventory increased to positive 8.4 from negative 8.3. Prices paid for raw materials grew to 62.6 from 61.6, while prices received for finished goods decreased to 17.1 from 19.4. Wages and benefits dropped to 9.4 from 14.6, while the employment index increased to 10.5 from 9.3, and the average workweek index held at 3.6, and the capital expenditures index jumped to 6.3 from 1.0.
As for future outlook (six months from now), the general business conditions index fell to 27.8 from 39.1 last month, the production index decreased to 47.1 from 54.9, while capacity use fell to 42.2 from 52.5, the Fed reported. Volume of new orders dropped to 44.4 from 53.7, while growth rate of orders index slipped to 30.9 from 42.6.
Unfilled orders slumped to 10.8 from 15.6, while the volume of shipments slid to 45.8 from 53.1, and delivery times gained to 3.2 from zero. Materials inventories slipped to 10.9 from 11.5, and the finished goods inventory rose to 6.4 from 5.2.
Prices paid for raw materials increased to 67.4 from 56.2, while prices received for finished goods dipped to 33.4 from 34.4. Wages and benefits surged to 44.4 from 31.3, the employment index rose to 39.1 from 38.6, while the average workweek index fell to 24.5 from 28.1, and the capital expenditures index increased to 28.0 from 20.9.
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.
