Texas factory activity, as measured by the production index, "increased again in June," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index grew to 11.4 in June from 8.0 in May.
The production index rose to 15.5 from 11.0.
Capacity use slipped to 9.2 from 9.4, the Fed reported. Volume of new orders increased to 6.5 from 3.8, while growth rate of orders index dropped to 1.5 from 2.8.
Unfilled orders surged to positive 3.0 from negative 8.1 in the prior survey, while the volume of shipments dipped to 10.3 from 11.0, and delivery times reversed to positive 1.1 from negative 7.7. The materials inventory index grew to 11.2 from 5.7, the finished goods inventory rose to positive 2.6 from negative 1.0. Prices paid for raw materials climbed to 27.3 from 26.3, while prices received for finished goods rose to 7.4 from 5.6. Wages and benefits dipped to 18.8 from 20.1, while the employment index grew to 13.1 from 2.9, and the hours worked index increased to 4.7 from 2.8, and the capital expenditures index slid to 12.7 from 14.9.
As for future outlook (six months from now), the general business conditions index rose to 18.7 from 11.8 last month, the production index increased to 44.3 from 36.9, while capacity use grew to 39.7 from 37.2, the Fed reported. Volume of new orders gained to 41.2 from 37.3, while growth rate of orders index increased to 31.2 from 30.4.
Unfilled orders rose to 6.3 from 5.1, while the volume of shipments climbed to 42.1 from 37.4, and delivery times improved to negative 1.5 from negative 4.8. Materials inventories jumped to 3.9 from 1.1, and the finished goods inventory narrowed to negative 3.9 from negative 9.7.
Prices paid for raw materials dipped to 37.5 from 37.7, while prices received for finished goods slipped to 24.7 from 27.9. Wages and benefits increased to 45.8 from 43.5, the employment index dipped to 26.9 from 29.0, while the hours worked index grew to 14.0 from 7.5, and the capital expenditures index fell to 17.3 from 23.9.
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.
