Texas factory activity, as measured by the production index, "increased again in May," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Tuesday.
The general business activity index slid to 8.0 in May from 11.7 in April.
The production index fell to 11.0 from 24.7.
Capacity use slipped to 9.4 from 18.7, the Fed reported. Volume of new orders decreased to 3.8 from 21.3, while growth rate of orders index dropped to 2.8 from 13.4.
Unfilled orders slumped to negative 8.1 from positive 3.1 in the prior survey, while the volume of shipments dipped to 11.0 from 12.4, and delivery times decreased to negative 7.7 from positive 3.2. The materials inventory index fell to 5.7 from 10.2, the finished goods inventory declined to negative 1.0 from positive 5.6. Prices paid for raw materials soared to 26.3 from 10.2, while prices received for finished goods slid to 5.6 from 8.0. Wages and benefits dipped to 20.1 from 21.3, while the employment index fell to 2.9 from 19.7, and the hours worked index decreased to 2.8 from 13.9, and the capital expenditures index inched up to 14.9 from 14.3.
As for future outlook (six months from now), the general business conditions index fell to 11.8 from 24.5 last month, the production index decreased to 36.9 from 47.1, while capacity use slid to 37.2 from 39.1, the Fed reported. Volume of new orders slipped to 37.3 from 43.9, while growth rate of orders index decreased to 30.4 from 37.0.
Unfilled orders slid to 5.1 from 5.9, while the volume of shipments declined to 37.4 from 43.3, and delivery times fell to negative 4.8 from negative 2.6. Materials inventories slid to 1.1 from 2.9, and the finished goods inventory reversed to negative 9.7 from positive 1.0.
Prices paid for raw materials rose to 37.7 from 31.4, while prices received for finished goods climbed to 27.9 from 21.2. Wages and benefits increased to 43.5 from 39.8, the employment index dipped to 29.0 from 30.8, while the hours worked index fell to 7.5 from 10.3, and the capital expenditures index rose to 23.9 from 17.7.
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.
