Texas factory activity, as measured by the production index, "expanded" in February, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
This month's survey data include annual seasonal factor revisions.
The general business activity index declined to 2.2 in February from 5.5 in January.
The production index dropped to 6.2 from 12.9, while capacity use slumped to 5.4 from 14.0, the Fed reported. Volume of new orders fell to 2.8 from 12.2, while growth rate of orders index widened to negative 5.5 from negative 3.8.
Unfilled orders improved to negative 3.5 from negative 7.9 in the prior survey, while the volume of shipments decreased to 2.4 from 21.9, and delivery times slipped to zero from 4.6. The materials inventory index narrowed to negative 0.5 from negative 7.4, the finished goods inventory reversed to positive 4.2 from negative 5.6. Prices paid for raw materials slumped to 15.8 from 27.8, while prices received for finished goods sank to 4.6 from 10.2. Wages and benefits fell to 12.9 from 19.2, while the employment index slid to 2.0 from 8.7, and the hours worked index dropped to negative 3.0 from positive 0.8, and the capital expenditures index fell to 12.4 from 21.6.
As for future outlook (six months from now), the general business conditions index rose to 10.8 from 9.2 last month, the production index decreased to 28.7 from 35.7, while capacity use declined to 27.7 from 32.0, the Fed reported. Volume of new orders fell to 29.6 from 35.9, while growth rate of orders index decreased to 24.3 from 25.9.
Unfilled orders slipped to 8.7 from 9.4, while the volume of shipments dropped to 30.6 from 36.2, and delivery times widened to negative 3.4 from negative 0.9. Materials inventories declined to 15.2 from 20.3, and the finished goods inventory rose to 5.5 from 1.2.
Prices paid for raw materials slipped to 38.1 from 41.1, while prices received for finished goods slid to 13.2 from 21.4. Wages and benefits fell to 36.0 from 42.4, the employment index slid to 23.9 from 28.6, while the hours worked index slumped to 1.8 from 11.2, and the capital expenditures index fell to 25.0 from 29.8.
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.