Texas factory activity, as measured by the production index, "increased for the tenth month in a row in February," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index slid to 0.3 in February from 3.8 in January.
The production index grew to 10.8 from 7.1.
Capacity use climbed to 9.1 from 8.2, the Fed reported. Volume of new orders decreased to 9.5 from 14.4, while growth rate of orders index fell to 5.3 from 6.4.
Unfilled orders reversed to positive 1.9 from negative 1.3 in the prior survey, while the volume of shipments climbed to 13.3 from 9.2, and delivery times improved to positive 4.4 from negative 5.1. The materials inventory index jumped to 7.7 from 2.6, the finished goods inventory fell to negative 1.1 from positive 5.1. Prices paid for raw materials slipped to 21.9 from 26.8, while prices received for finished goods rose to 11.2 from 11.0. Wages and benefits grew to 25.8 from 21.6, while the employment index climbed to 9.9 from 8.8, and the hours worked index rose to 12.0 from 3.4, and the capital expenditures index fell to 7.0 from 18.9.
As for future outlook (six months from now), the general business conditions index slid to 15.2 from 22.3 last month, the production index decreased to 46.6 from 49.6, while capacity use fell to 40.2 from 48.0, the Fed reported. Volume of new orders dipped to 41.9 from 47.8, while growth rate of orders index declined to 34.6 from 38.5.
Unfilled orders slipped to 5.4 from 13.8, while the volume of shipments dropped to 39.1 from 45.4, and delivery times rose to 5.9 from 3.9. Materials inventories slid to 12.5 from 14.0, and the finished goods inventory gained to 2.2 from zero.
Prices paid for raw materials rose to 40.9 from 39.6, while prices received for finished goods fell to 27.3 from 38.9. Wages and benefits slid to 42.8 from 50.4, the employment index dipped to 37.5 from 38.5, while the hours worked index dropped to 13.1 from 17.1, and the capital expenditures index rose to 25.0 from 24.2.
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.
