Texas factory activity, as measured by the production index, "increased for the eighth month in a row in December," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index rose to 3.1 in December from 1.9 in November.
The production index slid to 7.1 from 16.9.
Capacity use dropped to 8.6 from 16.2, the Fed reported. Volume of new orders decreased to negative 0.5 from positive 5.4, while growth rate of orders index fell to negative 3.1 from negative 0.1.
Unfilled orders widened to negative 5.6 from negative 5.2 in the prior survey, while the volume of shipments decreased to 0.7 from 14.8, and delivery times widened to negative 10.4 from negative 9.4. The materials inventory index reversed to negative 0.2 from positive 3.0, the finished goods inventory slipped to 3.4 from 5.9. Prices paid for raw materials jumped to 32.8 from 22.6, while prices received for finished goods rose to 5.9 from 2.2. Wages and benefits grew to 21.6 from 14.6, while the employment index climbed to 6.8 from 5.0, and the hours worked index fell to negative 2.0 from positive 4.2, and the capital expenditures index rose to 12.4 from 10.6.
As for future outlook (six months from now), the general business conditions index surged to 22.8 from 7.0 last month, the production index increased to 51.3 from 34.8, while capacity use rose to 44.3 from 36.2, the Fed reported. Volume of new orders grew to 44.9 from 33.6, while growth rate of orders index gained to 31.0 from 26.4.
Unfilled orders jumped to 14.3 from 7.3, while the volume of shipments rose to 41.2 from 34.2, and delivery times widened to negative 4.7 from negative 3.7. Materials inventories rose to 5.9 from 4.9, and the finished goods inventory climbed to positive 6.1 from negative 3.8.
Prices paid for raw materials gained to 42.2 from 31.7, while prices received for finished goods rose to 37.8 from 26.8. Wages and benefits dipped to 46.8 from 48.2, the employment index held at 30.5, while the hours worked index surged to 25.6 from 12.2, and the capital expenditures index grew to 30.1 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.
