NEW YORK - Texas factory activity, as measured by the production index, rose sharply in March, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index slipped to 11.5 in March from 17.5 in February.
The production index surged to 24.1 from 9.7, while capacity use increased to 18.7 from 9.2, the Fed reported. Volume of new orders dipped to 13.6 from 14.7, while growth rate of orders index rose to 10.0 from 6.4.
Unfilled orders reversed to negative 3.3 from positive 1.3 in the prior survey, while the volume of shipments grew to 18.7 from 7.2, and delivery times improved to negative 3.0 from negative 3.2. The materials inventory index crept to 6.6 from 6.0, the finished goods inventory decreased to 1.0 from 8.4. Prices paid for raw materials slid to 57.2 from 62.6, while prices received for finished goods decreased to 17.0 from 17.1. Wages and benefits gained to 11.9 from 9.4, while the employment index increased to 11.6 from 10.5, and the average workweek index rose to 12.8 from 3.6, and the capital expenditures index dipped to 6.0 from 6.3.
As for future outlook (six months from now), the general business conditions index fell to 16.8 from 27.8 last month, the production index increased to 48.5 from 47.1, while capacity use rose to 44.6 from 42.2, the Fed reported. Volume of new orders climbed to 46.4 from 44.4, while growth rate of orders index jumped to 36.7 from 30.9.
Unfilled orders slumped to 7.0 from 10.8, while the volume of shipments slid to 42.7 from 45.8, and delivery times fell to negative 1.0 from positive 3.2. Materials inventories gained to 13.2 from 10.9, and the finished goods inventory fell to zero from 6.4.
Prices paid for raw materials decreased to 57.6 from 67.4, while prices received for finished goods grew to 34.7 from 33.4. Wages and benefits slumped to 32.4 from 44.4, the employment index fell to 31.0 from 39.1, while the average workweek index fell to 18.2 from 24.5, and the capital expenditures index decreased to 16.0 from 28.0.
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.
