Texas factory activity, as measured by the production index, "increased again in September," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index surged to 10.8 in September from 7.1 in August.
The production index soared to 17.6 from 6.8.
Capacity use gained to 20.2 from 3.6, the Fed reported. Volume of new orders increased to 7.5 from 2.2, while growth rate of orders index narrowed to negative 3.2 from negative 9.6.
Unfilled orders slipped to negative 0.9 from positive 3.8 in the prior survey, while the volume of shipments grew to 15.9 from 6.4, and delivery times slid to 1.5 from 4.8. The materials inventory index declined to negative 0.7 from zero, the finished goods inventory widened to negative 6.8 from negative 6.2. Prices paid for raw materials slumped to 19.5 from 26.4, while prices received for finished goods fell to 7.0 from 9.1. Wages and benefits gained to 26.2 from 23.7, while the employment index dipped to 10.6 from 11.1, and the hours worked index increased to 9.5 from 2.9, and the capital expenditures index slid to 4.4 from 6.6.
As for future outlook (six months from now), the general business conditions index fell to 12.1 from 18.7 last month, the production index decreased to 40.0 from 44.5, while capacity use slid to 34.7 from 39.8, the Fed reported. Volume of new orders slid to 34.6 from 45.3, while growth rate of orders index increased to 30.8 from 30.0.
Unfilled orders fell to 3.4 from 4.5, while the volume of shipments dropped to 38.6 from 44.6, and delivery times reversed to positive 0.5 from negative 1.6. Materials inventories climbed to 5.3 from zero, and the finished goods inventory narrowed to negative 1.0 from negative 1.8.
Prices paid for raw materials fell to 36.4 from 43.5, while prices received for finished goods gained to 29.3 from 22.2. Wages and benefits decreased to 40.7 from 43.8, the employment index slid to 18.4 from 24.1, while the hours worked index dipped to 11.6 from 11.7, and the capital expenditures index increased to 23.5 from 16.3.
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.
