Texas factory activity, as measured by the production index, “increased for a second month in a row in April,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index widened to negative 13.9 in April from negative 13.6 in March.
The production index climbed to 5.8 from 3.3 in March.
Capacity use rose to 8.2 from 3.3, the Fed reported. Volume of new orders reversed to positive 6.2 from negative 4.8, while growth rate of orders index narrowed to negative 0.7 from negative 11.7.
Unfilled orders improved to negative 8.8 from negative 9.0 in the prior survey, while the volume of shipments gained to 7.1 from 0.3, and delivery times rose to negative 6.9 from negative 7.7. The materials inventory index rebounded to negative 2.9 from negative 7.2, the finished goods inventory increased to zero from negative 4.5. Prices paid for raw materials climbed to positive 5.5 from negative 0.2, while prices received for finished goods gained to negative 6.6 from negative 8.2. Wages and benefits increased to 16.7 from 14.7, while the employment index narrowed to negative 3.7 from negative 10.3, and the hours worked index rose to negative 1.0 from negative 5.6, and the capital expenditures index increased to positive 1.6 from negative 0.9.
As for future outlook (six months from now), the general business conditions index slipped to 0.4 from 6.1 last month, the production index gained to 33.9 from 31.8, while capacity use grew to 35.3 from 26.3, the Fed reported. Volume of new orders rose to 32.6 from 29.7, while growth rate of orders index increased to 22.4 from 17.4.
Unfilled orders fell to 1.8 from 7.3, while the volume of shipments climbed to 33.7 from 25.6, and delivery times widened to negative 2.5 from negative 0.6. Materials inventories slid to zero from 2.8, and the finished goods inventory narrowed to negative 2.1 from negative 7.5.
Prices paid for raw materials grew to 20.2 from 18.9, while prices received for finished goods decreased to 2.1 from 13.9. Wages and benefits slipped to 33.8 from 34.7, the employment index declined to 9.4 from 13.0, while the hours worked index reversed to positive 14.6 from negative 0.9, and the capital expenditures index fell to 8.5 from 13.3.
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.
