Texas factory activity, as measured by the production index, "contracted again in February," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index narrowed to negative 31.8 in February from negative 34.6 in January.
The production index climbed to negative 8.5 from negative 10.2.
Capacity use fell to negative 8.2 from negative 7.0, the Fed reported. Volume of new orders decreased to negative 17.6 from negative 9.2, while growth rate of orders index inched up to negative 17.4 from negative 17.5.
Unfilled orders narrowed to negative 11.4 from negative 17.2 in the prior survey, while the volume of shipments improved to negative 1.1 from negative 11.0, and delivery times rose to negative 6.1 from negative 9.3. The materials inventory index widened to negative 12.9 from negative 9.9, the finished goods inventory reversed to negative 1.7 from negative 11. Prices paid for raw materials slipped to negative 12.0 from negative 8.6, while prices received for finished goods fell to negative 12.5 from negative 9.6. Wages and benefits decreased to 12.3 from 16.5, while the employment index declined to negative 11.1 from negative 4.2, and the hours worked index fell to negative 9.8 from negative 9.2, and the capital expenditures index dropped to negative 1.6 from positive 3.4.
As for future outlook (six months from now), the general business conditions index rebounded to negative 2.1 from negative 24.0 last month, the production index gained to 33.4 from 26.5, while capacity use rose to 35.9 from 22.2, the Fed reported. Volume of new orders increased to 30.2 from 25.4, while growth rate of orders index gained to 18.7 from 16.8.
Unfilled orders rose to 7.0 from 1.4, while the volume of shipments grew to 26.4 from 22.7, and delivery times widened to negative 2.6 from negative 1.5. Materials inventories crept to 2.7 from 2.6, and the finished goods inventory reversed to positive 1.8 from negative 6.2.
Prices paid for raw materials slid to 10.8 from 11.5, while prices received for finished goods increased to positive 0.9 from negative 5.3. Wages and benefits gained to 34.5 from 28.5, the employment index soared to 20.9 from 7.7, while the hours worked index rebounded to positive 12.7 from negative 0.5, and the capital expenditures index rose to 21.8 from 8.9.
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.
