Texas factory activity, as measured by the production index, "increased" in March, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index climbed to 7.4 in March from 2.2 in February.
The production index rose to 9.9 from 6.2, while capacity use crept to 5.5 from 5.4, the Fed reported. Volume of new orders grew to 8.7 from 2.8, while growth rate of orders index narrowed to negative 3.2 from negative 5.5.
Unfilled orders widened to negative 5.6 from negative 3.5 in the prior survey, while the volume of shipments increased to 10.6 from 2.4, and delivery times climbed to 2.2 from zero. The materials inventory index reversed to positive 2.2 from negative 0.5, the finished goods inventory increased to 9.9 from 4.2. Prices paid for raw materials gained to 19.1 from 15.8, while prices received for finished goods rose to 7.2 from 4.6. Wages and benefits jumped to 18.5 from 12.9, while the employment index rose to 2.6 from 2.0, and the hours worked index narrowed to negative 2.4 from negative 3.0, and the capital expenditures index climbed to 13.7 from 12.4.
As for future outlook (six months from now), the general business conditions index rose to 15.5 from 10.8 last month, the production index increased to 35.6 from 28.7, while capacity use gained to 32.7 from 27.7, the Fed reported. Volume of new orders rose to 33.8 from 29.6, while growth rate of orders index increased to 25.8 from 24.3.
Unfilled orders climbed to 9.3 from 8.7, while the volume of shipments jumped to 35.1 from 30.6, and delivery times narrowed to negative 2.9 from negative 3.4. Materials inventories declined to 5.8 from 15.2, and the finished goods inventory fell to 1.2 from 5.5.
Prices paid for raw materials rose to 41.9 from 38.1, while prices received for finished goods surged to 23.2 from 13.2. Wages and benefits fell to 35.1 from 36.0, the employment index grew to 30.6 from 23.9, while the hours worked index increased to 5.1 from 1.8, and the capital expenditures index fell to 18.8 from 25.0.
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.
