Texas factory activity, as measured by the production index, "increased for a second month in a row in November after exhibiting weakness in the first three quarters," 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 4.9 in November from negative 12.7 in October.
The production index improved to 5.2 from 4.8.
Capacity use slid to 5.9 from 8.6, the Fed reported. Volume of new orders increased to negative 1.6 from negative 7.6, while growth rate of orders index narrowed to negative 7.3 from negative 7.7.
Unfilled orders slipped to negative 4.2 from negative 3.1 in the prior survey, while the volume of shipments fell to 4.2 from 6.4, and delivery times surged to positive 1.0 from negative 9.2. The materials inventory index widened to negative 3.4 from negative 0.8, the finished goods inventory reversed to negative 5.7 from positive 0.9. Prices paid for raw materials fell to negative 5.1 from negative 1.2, while prices received for finished goods declined to negative 12.1 from negative 9.5. Wages and benefits decreased to 16.0 from 17.9, while the employment index improved to 11.6 from 0.3, and the hours worked index soared to positive 9.9 from negative 1.7, and the capital expenditures index reversed to positive 2.1 from negative 0.4.
As for future outlook (six months from now), the general business conditions index gained to 7.3 from 4.1 last month, the production index dipped to 34.1 from 34.3, while capacity use gained to 34.2 from 27.3, the Fed reported. Volume of new orders climbed to 35.2 from 30.7, while growth rate of orders index increased to 24.3 from 19.6.
Unfilled orders dipped to 4.1 from 4.8, while the volume of shipments slid to 36.3 from 38.5, and delivery times rose to negative 3.3 from negative 6.6. Materials inventories slipped to 4.2 from 6.9, and the finished goods inventory declined to negative 6.8 from positive 3.9.
Prices paid for raw materials rose to 22.0 from 15.7, while prices received for finished goods increased to 12.9 from 12.6. Wages and benefits crept to 33.6 from 33.3, the employment index increased to 24.6 from 19.1, while the hours worked index dropped to 2.2 from 2.5, and the capital expenditures index fell to 14.0 from 20.0.
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.
