Texas factory activity, as measured by the production index, "was essentially flat in August," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index widened to negative 15.8 in August from negative 4.6 in July.
The production index improved to negative 0.8 from negative 1.9.
Capacity use narrowed to negative 0.2 from negative 4.2, the Fed reported. Volume of new orders decreased to negative 12.5 from positive 0.7, while growth rate of orders index slipped to negative 14.0 from negative 5.2.
Unfilled orders improved to negative 4.6 from negative 6.5 in the prior survey, while the volume of shipments rose to negative 3.0 from negative 4.3, and delivery times climbed to 1.3 from 0.8. The materials inventory index reversed to negative 5.2 from positive 8.9, the finished goods inventory declined to negative 0.9 from positive 10.7. Prices paid for raw materials fell to negative 8.0 from positive 0.1, while prices received for finished goods widened to negative 15.7 from negative 2.9. Wages and benefits increased to 18.2 from 14.4, while the employment index improved to negative 1.4 from negative 3.3, and the hours worked index grew to positive 0.6 from negative 6.3, and the capital expenditures index rose to 4.0 from 1.6.
As for future outlook (six months from now), the general business conditions index slumped to 3.4 from 18.8 last month, the production index fell to 28.0 from 37.4, while capacity use slid to 22.8 from 36.8, the Fed reported. Volume of new orders dropped to 25.8 from 39.0, while growth rate of orders index declined to 18.6 from 29.7.
Unfilled orders dropped to 0.4 from 8.8, while the volume of shipments slid to 28.4 from 38.9, and delivery times reversed to negative 6.8 from positive 6.4. Materials inventories decreased to negative 0.9 from positive 1.9, and the finished goods inventory fell to negative 2.8 from positive 1.0.
Prices paid for raw materials slid to 12.8 from 18.8, while prices received for finished goods decreased to 2.7 from 11.4. Wages and benefits climbed to 32.4 from 31.2, the employment index slipped to 11.4 from 17.4, while the hours worked index dropped to 4.4 from 14.6, and the capital expenditures index fell to 9.4 from 13.5.
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.
