NEW YORK - Texas factory activity, as measured by the production index, declined in December, but at a slower pace than in November, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Tuesday.
The general business conditions index reversed to negative 3.0 in December from positive 3.2 in November.
The production index narrowed to negative 1.3 from negative 5.1, while capacity use increased to positive 0.7 from negative 10.2, the Fed reported. Volume of new orders climbed to negative 0.5 from negative 5.1, while growth rate of orders index increased to negative 6.3 from negative 6.8.
Unfilled orders slipped to negative 6.8 from negative 6.5 in the prior survey, while the volume of shipments rose to negative 0.8 from negative 1.1, and delivery times declined to negative 7.9 from negative 5.5. The materials inventory index slid to negative 7.2 from negative 1.9, the finished goods inventory gained to negative 7.9 from negative 9.9. Prices paid for raw materials jumped to 26.6 from 19.0, while prices received for finished goods reversed to negative 2.6 from positive 1.1. Wages and benefits jumped to 16.7 from 11.0, while the employment index rose to 11.8 from 9.0, and the average workweek index slid to 5.7 from 7.3, and the capital expenditures index increased to 4.5 from 3.3.
As for future outlook (six months from now), the general business conditions index rose to 10.3 from 9.7 last month, the production index increased to 37.1 from 35.1, while capacity use grew to 35.2 from 31.1, the Fed reported. Volume of new orders gained to 35.0 from 32.7, while growth rate of orders index decreased to 23.9 from 26.1.
Unfilled orders rose to 9.1 from 6.8, while the volume of shipments slid to 32.3 from 32.6, and delivery times reversed to negative 2.3 from positive 1.1. Materials inventories surged to 18.4 from 12.7, and the finished goods inventory dropped to negative 9.1 from positive 1.2.
Prices paid for raw materials increased to 34.1 from 28.4, while prices received for finished goods soared to 25.0 from 13.8. Wages and benefits gained to 38.5 from 36.6, the employment index increased to 23.8 from 13.6, while the average workweek index fell to 9.0 from 11.3, and the capital expenditures index increased to 21.6 from 11.4.
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.
