Texas factory activity, as measured by the production index, "increased again in December," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index declined to 4.1 in December from 10.5 in November.
The production index surged to 15.8 from 6.0.
Capacity use rose to 12.4 from 9.8, the Fed reported. Volume of new orders decreased to 1.3 from 5.6, while growth rate of orders index widened to negative 5.6 from negative 2.9.
Unfilled orders dropped to negative 9.3 from positive 1.0 in the prior survey, while the volume of shipments grew to 19.6 from 12.1, and delivery times reversed to positive 1.9 from negative 2.2. The materials inventory index decreased to negative 2.4 from positive 15.3, the finished goods inventory dropped to negative 7.4 from negative 1.9. Prices paid for raw materials slid to 10.2 from 15.3, while prices received for finished goods fell to 4.2 from 9.7. Wages and benefits increased to 25.1 from 23.9, while the employment index dipped to 9.2 from 9.6, and the hours worked index decreased to zero from 5.7, and the capital expenditures index slumped to 5.6 from 13.3.
As for future outlook (six months from now), the general business conditions index dropped to 13.9 from 18.3 last month, the production index slid to 34.2 from 40.9, while capacity use fell to 32.3 from 35.1, the Fed reported. Volume of new orders declined to 33.5 from 37.6, while growth rate of orders index decreased to 27.1 from 29.8.
Unfilled orders dropped to negative 1.6 from positive 8.9, while the volume of shipments slipped to 30.2 from 38.7, and delivery times widened to negative 4.0 from negative 0.2. Materials inventories climbed to 10.1 from 8.9, and the finished goods inventory decreased to 3.0 from 7.9.
Prices paid for raw materials fell to 12.2 from 28.0, while prices received for finished goods dropped to 12.0 from 23.5. Wages and benefits decreased to 38.5 from 42.3, the employment index slipped to 23.5 from 27.5, while the hours worked index plunged to 0.4 from 14.2, and the capital expenditures index inched down to 19.4 from 21.0.
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.
