Texas factory activity, as measured by the production index, "increased again in November," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index remained 10.5 in November, unchanged from 10.5 in October.
The production index dropped to 6.0 from 13.7.
Capacity use slid to 9.8 from 18.1, the Fed reported. Volume of new orders decreased to 5.6 from 14.2, while growth rate of orders index reversed to negative 2.9 from positive 7.4.
Unfilled orders gained to 1.0 from 0.8 in the prior survey, while the volume of shipments fell to 12.1 from 12.8, and delivery times fell to negative 2.2 from positive 4.2. The materials inventory index increased to 15.3 from 9.4, the finished goods inventory dropped to negative 1.9 from positive 4.5. Prices paid for raw materials slid to 15.3 from 19.7, while prices received for finished goods gained to 9.7 from 7.1. Wages and benefits dipped to 23.9 from 24.5, while the employment index declined to 9.6 from 10.2, and the hours worked index decreased to 5.7 from 8.3, and the capital expenditures index jumped to 13.3 from 10.8.
As for future outlook (six months from now), the general business conditions index grew to 18.3 from 13.3 last month, the production index dipped to 40.9 from 41.2, while capacity use grew to 35.1 from 33.9, the Fed reported. Volume of new orders fell to 37.6 from 38.1, while growth rate of orders index increased to 29.8 from 22.3.
Unfilled orders climbed to 8.9 from 3.5, while the volume of shipments gained to 38.7 from 34.2, and delivery times reversed to negative 0.2 from positive 1.7. Materials inventories climbed to 8.9 from 6.7, and the finished goods inventory rebounded to positive 7.9 from negative 1.0.
Prices paid for raw materials fell to 28.0 from 31.4, while prices received for finished goods surged to 23.5 from 15.2. Wages and benefits increased to 42.3 from 40.8, the employment index slipped to 27.5 from 31.7, while the hours worked index jumped to 14.2 from 6.3, and the capital expenditures index inched up to 21.0 from 20.6.
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.
