NEW YORK - “Texas factory activity increased for the sixth month in a row in April,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index soared to 21.1 in April from 7.2 in March.
The production index grew to 18.2 from 8.7, while capacity use gained to 20.6 from 14.9, the Fed reported. Volume of new orders jumped to 15.8 from 10.9, while growth rate of orders index surged to 19.6 from 8.6.
Unfilled orders increased to 8.9 from 7.4 in the prior survey, while the volume of shipments jumped to 14.6 from 1.6, and delivery times reversed to positive 4.3 from negative 7.8. The materials inventory index decreased to 2.2 from 7.8, the finished goods inventory slipped to negative 6.5 from zero. Prices paid for raw materials crept to 42.1 from 39.3, while prices received for finished goods climbed to positive 2.9 from negative 3.3. Wages and benefits increased to 16.3 from 4.5, while the employment index rose to 9.8 from 2.8, and the average workweek index soared to 22.8 from 13.5, and the capital expenditures index improved to positive 1.1 from negative 7.8.
As for future outlook (six months from now), the general business conditions index grew to 23.1 from 18.4 last month, the production index increased to 35.1 from 34.0, while capacity use gained to 33.0 from 32.1, the Fed reported. Volume of new orders climbed to 30.5 from 29.5, while growth rate of orders index slid to 26.2 from 28.5.
Unfilled orders increased to 7.7 from 5.8, while the volume of shipments dropped to 28.7 from 38.1, and delivery times fell to negative 2.2 from zero. Materials inventories reversed to positive 13.0 from negative 4.6, and the finished goods inventory improved to 6.5 from 3.4.
Prices paid for raw materials increased to 47.2 from 40.3, while prices received for finished goods grew to 16.5 from 11.4. Wages and benefits fell to 29.6 from 31.8, the employment index rose to 17.6 from 12.5, while the average workweek index dropped to 18.4 from 25.3, and the capital expenditures index increased to 9.9 from 6.9.
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.
