Texas factory activity, as measured by the production index, "increased for the ninth month in a row in January," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index rose to 3.8 in January from 3.7 in December.
The production index grew to 7.1 from 6.0. The December numbers include annual seasonal factor revisions, the Fed said.
Capacity use dipped to 8.2 from 8.6, the Fed reported. Volume of new orders increased to 14.4 from 1.3, while growth rate of orders index rose to positive 6.4 from negative 1.0.
Unfilled orders narrowed to negative 1.3 from negative 4.0 in the prior survey, while the volume of shipments climbed to 9.2 from 0.4, and delivery times improved to negative 5.1 from negative 7.7. The materials inventory index doubled to 2.6 from 1.3, the finished goods inventory gained to 5.1 from 3.4. Prices paid for raw materials slipped to 26.8 from 31.2, while prices received for finished goods rose to 11.0 from 6.1. Wages and benefits slid to 21.6 from 22.2, while the employment index climbed to 8.8 from 7.4, and the hours worked index rose to positive 3.4 from negative 1.1, and the capital expenditures index grew to 18.9 from 13.3.
As for future outlook (six months from now), the general business conditions index slid to 22.3 from 24.8 last month, the production index decreased to 49.6 from 53.6, while capacity use rose to 48.0 from 45.9, the Fed reported. Volume of new orders dipped to 47.8 from 48.1, while growth rate of orders index gained to 38.5 from 31.3.
Unfilled orders climbed to 13.8 from 10.9, while the volume of shipments rose to 45.4 from 42.9, and delivery times reversed to positive 3.9 from negative 4.7. Materials inventories rose to 14.0 from 5.9, and the finished goods inventory slumped to zero from 6.1.
Prices paid for raw materials slid to 39.6 from 42.2, while prices received for finished goods rose to 38.9 from 37.8. Wages and benefits rose to 50.4 from 47.7, the employment index grew to 38.5 from 30.5, while the hours worked index dropped to 17.1 from 26.3, and the capital expenditures index fell to 24.2 from 30.1.
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.
