NEW YORK - Texas factory activity, as measured by the production index, rose faster in July than in June, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index improved to negative 2.0 in July from negative 17.5 in June.
The production index rose to 10.8 from 5.6, while capacity use reversed to positive 0.6 from negative 0.8, the Fed reported. Volume of new orders gained to 16.0 from 6.4, while growth rate of orders index increased to 2.5 from 2.3.
Unfilled orders surged to positive 8.2 from negative 6.2 in the prior survey, while the volume of shipments grew to 7.8 from 0.4, and delivery times improved to 3.5 from 1.2. The materials inventory index slid to 5.4 from 6.5, the finished goods inventory remained zero. Prices paid for raw materials rose to 34.3 from 31.1, while prices received for finished goods declined to 4.6 from 10.0. Wages and benefits jumped to 18.4 from 15.5, while the employment index climbed to 12.1 from 5.3, and the average workweek index rose to 7.9 from 1.5, and the capital expenditures index reversed to negative 2.3 from positive 2.4.
As for future outlook (six months from now), the general business conditions index grew to 3.7 from 2.9 last month, the production index increased to 38.8 from 37.1, while capacity use increased to 30.5 from 27.4, the Fed reported. Volume of new orders crept to 28.5 from 28.0, while growth rate of orders index inched up to 22.6 from 22.1.
Unfilled orders jumped to positive 1.2 from negative 7.3, while the volume of shipments slid to 31.7 from 35.1, and delivery times dropped to negative 8.2 from negative 6.1. Materials inventories slid to negative 2.3 from positive 3.6, and the finished goods inventory reversed to negative 3.5 from positive 2.4.
Prices paid for raw materials increased to 47.6 from 45.1, while prices received for finished goods fell to 20.9 from 22.2. Wages and benefits dipped to 29.1 from 33.5, the employment index plunged to 2.3 from 14.5, while the average workweek index fell to 2.3 from 7.3, and the capital expenditures index decreased to 10.6 from 21.7.
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.
