Texas factory activity, as measured by the production index, "activity increased for the seventh consecutive month in January," according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index rose to 22.1 in January from 17.7 in December.
The production index slid to 11.9 in from 14.8.
Capacity use decreased to 9.1 from 15.6, the Fed reported. Volume of new orders increased to 15.7 from 10.1, while growth rate of orders index revered to positive 6.7 from negative 1.1.
Unfilled orders grew to positive 5.2 from negative 2.3 in the prior survey, while the volume of shipments gained to 15.8 from 5.8, and delivery times narrowed to negative 5.4 from negative 7.9. The materials inventory index widened to negative 5.3 from negative 2.2, the finished goods inventory fell to negative 8.8 from negative 2.7. Prices paid for raw materials climbed to 30.8 from 30.0, while prices received for finished goods rose to 17.7 from 16.2. Wages and benefits increased to 20.8 from 19.8, while the employment index rose to positive 6.1 from negative 3.4, and the hours worked index increased to 9.1 from 3.1, and the capital expenditures index surged to 16.3 from 6.7.
As for future outlook (six months from now), the general business conditions index gained to 43.7 from 42.5 last month, the production index slid to 53.9 from 54.8, while capacity use climbed to 49.9 from 48.6, the Fed reported. Volume of new orders increased to 55.2 from 48.0, while growth rate of orders index soared to 48.4 from 36.0.
Unfilled orders gained to 16.6 from 10.9, while the volume of shipments climbed to 51.8 from 48.7, and delivery times slipped to 4.4 from 5.7. Materials inventories gained to 3.7 from 1.9, and the finished goods inventory rose to 13.7 from 11.3.
Prices paid for raw materials dipped to 38.7 from 40.2, while prices received for finished goods increased to 32.8 from 26.0. Wages and benefits fell to 42.5 from 43.6, the employment index crept to 37.7 from 37.5, while the hours worked index inched up to 14.3 from 14.2, and the capital expenditures index declined to 26.6 from 36.8.
The Texas Manufacturing Outlook Survey is a monthly anecdotal survey of manufacturers in Texas. Over 100 manufacturers regularly participate in the Dallas Fed survey, which began collecting data in May 2004.
