Texas factory activity, as measured by the production index, “increased in October after nine months of flat or declining output,” 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 12.7 in October from negative 9.5 in September.
The production index improved to 4.8 from 0.9.
Capacity use gained to 8.6 from 4.9, the Fed reported. Volume of new orders decreased to negative 7.6 from negative 4.6, while growth rate of orders index slipped to negative 7.7 from negative 4.3.
Unfilled orders improved to negative 3.1 from negative 7.9 in the prior survey, while the volume of shipments rose to 6.4 from 0.9, and delivery times widened to negative 9.2 from negative 5.8. The materials inventory index narrowed to negative 0.8 from negative 1.0, the finished goods inventory reversed to positive 0.9 from negative 2.6. Prices paid for raw materials fell to negative 1.2 from negative 0.3, while prices received for finished goods narrowed to negative 9.5 from negative 10.9. Wages and benefits increased to 17.9 from 15.6, while the employment index improved to positive 0.3 from negative 6.1, and the hours worked index rose to negative 1.7 from negative 11.1, and the capital expenditures index narrowed to negative 0.4 from negative 8.0.
As for future outlook (six months from now), the general business conditions index slipped to 4.1 from 4.8 last month, the production index grew to 34.3 from 24.7, while capacity use gained to 27.3 from 21.4, the Fed reported. Volume of new orders climbed to 30.7 from 24.1, while growth rate of orders index increased to 19.6 from 15.2.
Unfilled orders jumped to positive 4.8 from negative 0.6, while the volume of shipments grew to 38.5 from 21.2, and delivery times fell to negative 6.6 from negative 5.7. Materials inventories reversed to positive 6.9 from negative 5.6, and the finished goods inventory rose to positive 3.9 from negative 8.2.
Prices paid for raw materials slid to 15.7 from 17.6, while prices received for finished goods increased to 12.6 from 7.3. Wages and benefits fell to 33.3 from 41.5, the employment index soared to 19.1 from 6.1, while the hours worked index dropped to 2.5 from 6.0, and the capital expenditures index gained to 20.0 from 17.3.
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.
