NEW YORK - Texas factory activity, as measured by the production index, was flat in August, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released today.
The general business conditions index improved to negative 13.5 in August from negative 21 in July.
The production index slipped to negative 0.1 from positive 4.9, while capacity use dipped to negative 3.1 from negative 0.6, the Fed reported. Volume of new orders narrowed to negative 9.3 from negative 9.6, while growth rate of orders index slumped to negative 13.2 from negative 9.9.
Unfilled orders increased to negative 4.6 from negative 7.6 in the prior survey, while the volume of shipments slipped to negative 3.4 from negative 1.1, and delivery times rose to negative 4.0 from negative 6.0. The materials inventory index widened to negative 9.1 from negative 6.1, the finished goods inventory declined to negative 8.2 from negative 7.0. Prices paid for raw materials grew to 24.3 from 12.3, while prices received for finished goods increased to negative 5.7 from negative 11.4. Wages and benefits dropped to 7.1 from 8.0, while the employment index reversed to negative 5.1 from positive 5.1, and the average workweek index climbed to negative 6.0 from negative 7.0, and the capital expenditures index remained at 1.0.
As for future outlook (six months from now), the general business conditions index slumped to negative 4.3 from positive 5.0 last month, the production index decreased to 24.2 from 26.6, while capacity use grew to 23.3 from 20.7, the Fed reported. Volume of new orders slipped to 20.8 from 29.6, while growth rate of orders index decreased to 15.1 from 25.6.
Unfilled orders climbed to 3.1 from zero, while the volume of shipments skidded to 23.6 from 28.2, and delivery times narrowed to negative 7.2 from negative 8.0. Materials inventories reversed to negative 9.3 from positive 1.0, and the finished goods inventory slumped to negative 12.5 from negative 3.0.
Prices paid for raw materials increased to 23.7 from 20.2, while prices received for finished goods rose to 7.2 from zero. Wages and benefits crept to 30.9 from 29.8, the employment index dropped to 1.0 from 2.0, while the average workweek index doubled to 2.0 from 1.0, and the capital expenditures index increased to 3.1 from 1.0.
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.
