NEW YORK - Texas factory activity, as measured by the production index, picked up in January, as the survey numbers include annual seasonal revisionw, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index reversed to positive 15.3 in January from negative 0.3 in December.
The production index gained to 5.8 from 0.2, while capacity use increased to 8.5 from 4.0, the Fed reported. Volume of new orders climbed to positive 9.5 from negative 2.0, while growth rate of orders index increased to positive 6.6 from negative 7.3.
Unfilled orders narrowed to negative 1.0 from negative 5.1 in the prior survey, while the volume of shipments rose to positive 6.1 from negative 1.1, and delivery times reversed to positive 8.7 from negative 7.9. The materials inventory index rose to positive 5.8 from negative 6.7, the finished goods inventory gained to zero from negative 7.9. Prices paid for raw materials dipped to 24.4 from 25.7, while prices received for finished goods reversed to positive 9.0 from negative 0.8. Wages and benefits slid to 17.5 from 19.4, while the employment index rose to 12.2 from 9.9, and the average workweek index grew to 6.6 from 3.5, and the capital expenditures index increased to 9.6 from 7.7.
As for future outlook (six months from now), the general business conditions index rose to 22.3 from 9.5 last month, the production index increased to 43.6 from 38.1, while capacity use grew to 41.1 from 36.2, the Fed reported. Volume of new orders gained to 45.6 from 36.0, while growth rate of orders index increased to 30.0 from 23.3.
Unfilled orders rose to 11.3 from 9.1, while the volume of shipments surged to 44.1 from 33.0, and delivery times reversed to positive 6.6 from negative 2.3. Materials inventories slipped to 12.1 from 18.4, and the finished goods inventory jumped to positive 6.7 from negative 9.1.
Prices paid for raw materials increased to 42.9 from 34.1, while prices received for finished goods inched up to 27.0 from 25.0. Wages and benefits fell to 36.6 from 39.8, the employment index increased to 25.5 from 23.8, while the average workweek index grew to 11.2 from 6.5, and the capital expenditures index increased to 25.3 from 21.6.
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.