NEW YORK - Texas factory activity decreased in June after seventh monthly increases, 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 4.0 in June from positive 2.9 in May.
The production index sank to negative 1.9 from positive 20.8, while capacity use dipped to 2.7 from 18.7, the Fed reported. Volume of new orders fell to negative 8.2 from positive 15.8, while growth rate of orders index slumped to negative 4.9 from positive 9.1.
Unfilled orders decreased to negative 9.3 from positive 1.8 in the prior survey, while the volume of shipments slid to negative 9.0 from positive 14.8, and delivery times fell to negative 2.9 from positive 6.4. The materials inventory index dropped to negative 8.6 from negative 4.6, the finished goods inventory slipped to negative 8.6 from negative 8.3. Prices paid for raw materials fell to 29.7 from 38.5, while prices received for finished goods slipped to negative 6.8 from positive 2.4. Wages and benefits declined to 4.8 from 16.7, while the employment index dropped to 4.3 from 11.5, and the average workweek index dropped to 1.9 from 21.5, and the capital expenditures index slipped to 1.9 from 4.7.
As for future outlook (six months from now), the general business conditions index slumped to 13.7 from 28.0 last month, the production index decreased to 28.5 from 42.4, while capacity use fell to 30.1 from 37.1, the Fed reported. Volume of new orders slipped to 26.2 from 42.6, while growth rate of orders index decreased to 24.0 from 29.4.
Unfilled orders dropped to negative 0.9 from positive 7.5, while the volume of shipments skidded to 34.1 from 40.2, and delivery times improved to negative 1.0 from negative 10.2. Materials inventories reversed to negative 1.9 from positive 1.9, and the finished goods inventory dropped to negative 4.9 from zero.
Prices paid for raw materials decreased to 35.9 from 41.7, while prices received for finished goods slid to 15.7 from 18.7. Wages and benefits fell to 30.7 from 31.5, the employment index dropped to 11.7 from 21.3, while the average workweek index declined to 5.9 from 13.2, and the capital expenditures index decreased to 2.0 from 13.8.
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.
