Texas factory activity, as measured by the production index, "declined again in June," according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index narrowed to negative 18.3 in June from negative 20.8 in May.
The production index improved to negative 7.0 in June from 13.1 in May.
Capacity use rose to negative 9.3 from negative 11.0, the Fed reported. Volume of new orders narrowed to negative 14.2 from negative 14.9, while growth rate of orders index widened to negative 18.6 from negative 14.7.
Unfilled orders slid to negative 13.6 from negative 9.3 in the prior survey, while the volume of shipments climbed to negative 8.6 from negative 11.5, and delivery times fell to negative 7.6 from negative 4.6. The materials inventory index declined to negative 6.0 from negative 2.5, the finished goods inventory increased to negative 4.4 from negative 8.1. Prices paid for raw materials crept to 12.6 from 12.4, while prices received for finished goods widened to negative 5.2 from negative 3.3. Wages and benefits decreased to 21.6 from 21.8, while the employment index fell to negative 11.5 from negative 6.7, and the hours worked index slipped to negative 12.8 from negative 11.8, and the capital expenditures index gained to negative 2.1 from negative 6.6.
As for future outlook (six months from now), the general business conditions index reversed to positive 2.6 from negative 1.8 last month, the production index rose to 27.1 from 24.6, while capacity use slid to 21.9 from 25.7, the Fed reported. Volume of new orders increased to 26.6 from 24.0, while growth rate of orders index gained to 20.3 from 10.2.
Unfilled orders held at 2.1, while the volume of shipments rose to 27.6 from 24.4, and delivery times increased to positive 0.5 from negative 4.4. Materials inventories slid to negative 10.2 from negative 6.7, and the finished goods inventory widened to negative 10.2 from negative 8.6.
Prices paid for raw materials dropped to 14.8 from 20.0, while prices received for finished goods increased to 6.7 from 3.8. Wages and benefits crept to 31.6 from 31.4, the employment index gained to 12.2 from 2.7, while the hours worked index reversed to positive 4.6 from negative 4.4, and the capital expenditures index grew to 7.7 from 2.9.
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.
