“Texas manufacturing activity weakened in June,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released yesterday.
The general business conditions index declined to negative 24.1 in June from negative 10.3 in May.
The production index decreased to zero in June from 5.5 in May, while capacity use dipped to negative 0.9 from positive 7.4, the Fed reported. Volume of new orders slid to negative 6.5 from positive 8.3, while growth rate of orders index declined to negative 10.2 from negative 1.8.
Unfilled orders dropped to negative 12.0 from negative 8.4 in the prior survey, the volume of shipments slid to zero from 7.4, and delivery times reversed to positive 3.7 from negative 3.7. The materials inventory index fell to negative 10.2 from positive 0.9 and the finished goods inventory declined to negative 14.8 from positive 2.8. Prices paid for raw materials grew to 72.2 from 67.3, while prices received for finished goods slid to 33.4 from 34.2. Wages and benefits dipped to 23.4 from 24.0, the number of employees index dropped to negative 1.9 from positive 0.9, the average workweek index declined to negative 8.4 from negative 2.8, and the capital expenditures index decreased to negative 3.7 from positive 6.6.
As for future outlook — six months from now — the general business conditions index dropped to negative 10.46 from negative 5.6 last month, the production index increased to 19.8 from 17.8, while capacity use grew to 19.6 from 14.0, the Fed reported. Volume of new orders fell to 18.8 from 19.6, while growth rate of orders index declined to 9.4 from 11.2.
Unfilled orders widened to negative 7.5 from negative 2.9 in the prior survey, while the volume of shipments climbed to 20.6 from 18.6 and delivery times rose to negative 5.6 from negative 9.5. Materials inventories decreased to zero from positive 4.7, the finished goods inventory improved to negative 10.3 from negative 14.1.
Prices paid for raw materials rose to 65.5 from 58.0, while prices received for finished goods jumped to 43.9 from 38.7. Wages and benefits slipped to 36.4 from 38.7, the number of employees index rose to 4.6 from 3.7, while the average workweek index reversed to positive 1.0 from negative 1.9, and the capital expenditures index slumped to negative 2.8 from positive 10.5.
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.