Texas factory activity, as measured by the production index, "fell sharply in January," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
This month's survey includes annual seasonal factor revisions.
The general business activity index declined to negative 34.6 in January from negative 21.6 in December.
The production index dropped to negative 10.2 from positive 13.4.
Capacity use fell to negative 7.0 from positive 8.1, the Fed reported. Volume of new orders decreased to negative 9.2 from negative 7.0, while growth rate of orders index widened to negative 17.5 from negative 13.5.
Unfilled orders slipped to negative 17.2 from negative 15.2 in the prior survey, while the volume of shipments plunged to negative 11.0 from positive 7.0, and delivery times fell to negative 9.3 from negative 5.3. The materials inventory index widened to negative 9.9 from negative 9.3, the finished goods inventory climbed to positive 1.8 from negative 8.0. Prices paid for raw materials improved to negative 8.6 from negative 9.1, while prices received for finished goods narrowed to negative 9.6 from negative 15.5. Wages and benefits decreased to 16.5 from 20.2, while the employment index declined to negative 4.2 from positive 10.9, and the hours worked index slumped to negative 9.2 from positive 13.9, and the capital expenditures index gained to 3.4 from 1.9.
As for future outlook (six months from now), the general business conditions index dropped to negative 24.0 from negative 2.2 last month, the production index slipped to 26.5 from 29.6, while capacity use fell to 22.2 from 27.3, the Fed reported. Volume of new orders declined to 25.4 from 29.2, while growth rate of orders index increased to 16.8 from 16.7.
Unfilled orders dipped to 1.4 from 2.4, while the volume of shipments slid to 22.7 from 25.2, and delivery times narrowed to negative 1.5 from negative 6.2. Materials inventories fell to 2.6 from 9.1, and the finished goods inventory reversed to negative 6.2 from positive 2.8.
Prices paid for raw materials slid to 11.5 from 15.6, while prices received for finished goods decreased to negative 5.3 from positive 8.3. Wages and benefits slipped to 28.5 from 29.7, the employment index decreased to 7.7 from 17.1, while the hours worked index dropped to negative 0.5 from positive 1.4, and the capital expenditures index rose to 8.9 from 18.4.
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.
