Texas factory activity, as measured by the production index, "declined again in June," 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 7.0 in June from negative 20.8 in May.
The production index improved to negative 6.5 from negative 13.5.
Capacity use grew to negative 6.1 from negative 11.6, the Fed reported. Volume of new orders increased to negative 10.3 from negative 14.1, while growth rate of orders index widened to negative 16.5 from negative 15.2.
Unfilled orders declined to negative 17.1 from negative 10.6 in the prior survey, while the volume of shipments rose to negative 8.8 from negative 13.2, and delivery times climbed to negative 3.1 from negative 10.2. The materials inventory index reversed to positive 1.5 from negative 1.7, the finished goods inventory climbed to negative 3.6 from negative 4.5. Prices paid for raw materials rose to positive 7.4 from negative 1.7, while prices received for finished goods narrowed to negative 1.9 from negative 8.7. Wages and benefits increased to 16.4 from 14.7, while the employment index rose to negative 1.2 from negative 8.2, and the hours worked index grew to negative 10.7 from negative 11.6, and the capital expenditures index fell to 1.6 from 3.4.
As for future outlook (six months from now), the general business conditions index climbed to 8.1 from 4.9 last month, the production index slid to 35.2 from 38.6, while capacity use fell to 31.7 from 35.5, the Fed reported. Volume of new orders slipped to 33.9 from 35.3, while growth rate of orders index dropped to 21.1 from 27.3.
Unfilled orders reversed to negative 2.9 from positive 4.0, while the volume of shipments fell to 31.5 from 33.3, and delivery times dipped to 1.2 from 1.3. Materials inventories improved to negative 0.9 from negative 6.4, and the finished goods inventory narrowed to negative 2.8 from negative 13.8.
Prices paid for raw materials fell to 19.3 from 21.1, while prices received for finished goods slipped to 5.5 from 10.1. Wages and benefits climbed to 31.0 from 30.6, the employment index increased to 16.9 from 14.1, while the hours worked index slid to 6.1 from 11.1, and the capital expenditures index grew to 13.0 from 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.
