NEW YORK - Texas factory activity, as measured by the production index, rebounded slightly in July, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index slumped to negative 21 in July from negative 4.0 in June.
The production index bounced to positive 4.9 from negative 1.9, while capacity use dipped to negative 0.6 from positive 2.7, the Fed reported. Volume of new orders fell to negative 9.6 from negative 8.2, while growth rate of orders index slumped to negative 9.9 from negative 4.9.
Unfilled orders increased to negative 7.6 from negative 9.3 in the prior survey, while the volume of shipments climbed to negative 1.1 from negative 9.0, and delivery times fell to negative 6.0 from negative 2.9. The materials inventory index narrowed to negative 6.1 from negative 8.6, the finished goods inventory improved to negative 7.0 from negative 8.6. Prices paid for raw materials grew to 12.3 from 29.7, while prices received for finished goods slipped to negative 11.4 from negative 6.8. Wages and benefits increased to 8.0 from 4.8, while the employment index rose to 5.1 from 4.3, and the average workweek index dropped to negative 7.0 from positive 1.9, and the capital expenditures index slipped to 1.0 from 1.9.
As for future outlook (six months from now), the general business conditions index slumped to 5.0 from 13.7 last month, the production index decreased to 26.6 from 28.5, while capacity use fell to 20.7 from 30.1, the Fed reported. Volume of new orders gained to 29.6 from 26.2, while growth rate of orders index increased to 25.6 from 24.0.
Unfilled orders climbed to zero from negative 0.9, while the volume of shipments skidded to 28.2 from 34.1, and delivery times declined to negative 8.0 from negative 1.0. Materials inventories reversed to positive 1.0 from negative 1.9, and the finished goods inventory narrowed to negative 3.0 from negative 4.9.
Prices paid for raw materials decreased to 20.2 from 35.9, while prices received for finished goods slid to zero from 15.7. Wages and benefits fell to 29.8 from 30.7, the employment index dropped to 2.0 from 11.7, while the average workweek index declined to 1.0 from 5.9, and the capital expenditures index decreased to 1.0 from 2.0.
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.
