NEW YORK - Texas factory activity, as measured by the production index, was better in November, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index surged to 16.2 in November from 2.6 in October.
The production index gained to 13.1 from 6.9, while capacity use reversed to positive 9.9 from negative 2.3, the Fed reported. Volume of new orders increased to positive 9.1 from negative 4.3, while growth rate of orders index surged to positive 9.3 from negative 2.5.
Unfilled orders increased to zero from negative 6.3 in the prior survey, while the volume of shipments gained to positive 7.8 from negative 2.3, and delivery times rose to negative 1.0 from negative 11.5. The materials inventory index widened to negative 7.1 from negative 1.9, the finished goods inventory improved to negative 12.2 from negative 12.5. Prices paid for raw materials grew to 34.9 from 29.9, while prices received for finished goods increased to positive 6.0 from negative 3.5. Wages and benefits slipped to 5.1 from 10.6, while the employment index reversed to positive 5.8 from negative 4.1, and the average workweek index grew to positive 6.6 from negative 7.7, and the capital expenditures index climbed to positive 2.1 from negative 1.9.
As for future outlook (six months from now), the general business conditions index gained to 26.1 from 14.2 last month, the production index increased to 45.1 from 36.2, while capacity use grew to 43.9 from 36.0, the Fed reported. Volume of new orders jumped to 49.4 from 40.2, while growth rate of orders index increased to 40.5 from 35.4.
Unfilled orders climbed to 13.4 from 10.0, while the volume of shipments rose to 48.3 from 34.9, and delivery times narrowed to negative 1.1 from negative 5.0. Materials inventories improved to 9.3 from 2.0, and the finished goods inventory climbed to positive 6.2 from negative 5.0.
Prices paid for raw materials increased to 41.3 from 35.7, while prices received for finished goods rose to 22.9 from 11.0. Wages and benefits surged to 33.0 from 23.8, the employment index rose to 37.9 from 13.0, while the average workweek index grew to 22.1 from 17.9, and the capital expenditures index increased to 23.5 from 10.1.
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.
