Texas factory activity, as measured by the production index, “expanded slightly in March,” 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 13.6 in March from negative 31.8 in February.
The production index climbed to positive 3.3 from negative 8.5.
Capacity use rose to positive 3.3 from negative 8.2, the Fed reported. Volume of new orders increased to negative 4.8 from negative 17.6, while growth rate of orders index narrowed to negative 11.7 from negative 17.4.
Unfilled orders improved to negative 9.0 from negative 11.4 in the prior survey, while the volume of shipments gained to positive 0.3 from negative 1.1, and delivery times fell to negative 7.7 from negative 6.1. The materials inventory index rebounded to negative 7.2 from negative 12.9, the finished goods inventory slid to negative 4.5 from negative 1.7. Prices paid for raw materials climbed to negative 0.2 from negative 12.0, while prices received for finished goods gained to negative 8.2 from negative 12.5. Wages and benefits increased to 14.7 from 12.3, while the employment index narrowed to negative 10.3 from negative 11.1, and the hours worked index rose to negative 5.6 from negative 9.8, and the capital expenditures index increased to negative 0.9 from negative 1.6.
As for future outlook (six months from now), the general business conditions index rebounded to positive 6.1 from negative 2.1 last month, the production index slid to 31.8 from 35.9, while capacity use fell to 26.3 from 35.9, the Fed reported. Volume of new orders dipped to 29.7 from 30.2, while growth rate of orders index declined to 17.4 from 18.7.
Unfilled orders rose to 7.3 from 7.0, while the volume of shipments dropped to 25.6 from 26.4, and delivery times narrowed to negative 0.6 from negative 2.6. Materials inventories crept to 2.8 from 2.7, and the finished goods inventory reversed to negative 7.5 from positive 1.8.
Prices paid for raw materials grew to 18.9 from 10.8, while prices received for finished goods increased to 13.9 from 0.9. Wages and benefits gained to 34.7 from 34.5, the employment index declined to 13.0 from 20.9, while the hours worked index reversed to negative 0.9 from positive 12.7, and the capital expenditures index fell to 13.3 from 21.8.
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.
