Texas factory activity, as measured by the production index, "declined slightly in July," 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 4.6 in July from negative 7.0 in June.
The production index improved to negative 1.9 from negative 6.5.
Capacity use grew to negative 4.2 from negative 6.1, the Fed reported. Volume of new orders increased to positive 0.7 from negative 10.3, while growth rate of orders index narrowed to negative 5.2 from negative 16.5.
Unfilled orders improved to negative 6.5 from negative 17.1 in the prior survey, while the volume of shipments rose to negative 4.3 from negative 8.8, and delivery times climbed to positive 0.8 from negative 3.1. The materials inventory index gained to 8.9 from 1.5, the finished goods inventory climbed to positive 10.7 from negative 3.6. Prices paid for raw materials slid to 0.1 from 7.4, while prices received for finished goods widened to negative 2.9 from negative 1.9. Wages and benefits decreased to 14.4 from 16.4, while the employment index slid to negative 3.3 from negative 1.2, and the hours worked index grew to negative 6.3 from negative 10.7, and the capital expenditures index remained at 1.6.
As for future outlook (six months from now), the general business conditions index climbed to 18.8 from 8.1 last month, the production index rose to 37.4 from 35.2, while capacity use grew to 36.8 from 31.7, the Fed reported. Volume of new orders gained to 39.0 from 33.9, while growth rate of orders index climbed to 29.7 from 21.1.
Unfilled orders reversed to positive 8.8 from negative 2.9, while the volume of shipments rose to 38.9 from 31.5, and delivery times jumped to 6.4 from 1.2. Materials inventories improved to positive 1.9 from negative 0.9, and the finished goods inventory reversed to positive 1.0 from negative 2.8.
Prices paid for raw materials fell to 18.8 from 19.3, while prices received for finished goods increased to 11.4 from 5.5. Wages and benefits climbed to 31.2 from 31.0, the employment index increased to 17.4 from 16.9, while the hours worked index soared to 14.6 from 6.1, and the capital expenditures index grew to 13.5 from 13.0.
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.
