Texas factory activity, as measured by the production index, "increased for the eleventh month in a row in March," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index rose to 4.9 in March from 0.3 in February.
The production index grew to 17.1 from 10.8.
Capacity use climbed to 13.1 from 9.1, the Fed reported. Volume of new orders increased to 14.7 from 9.5, while growth rate of orders index climbed to 8.6 from 5.3.
Unfilled orders dipped to 0.9 from 1.9 in the prior survey, while the volume of shipments climbed to 19.5 from 13.3, and delivery times declined to 1.7 from 4.4. The materials inventory index jumped to 9.6 from 7.7, the finished goods inventory rose to positive 9.1 from negative 1.1. Prices paid for raw materials grew to 23.1 from 21.9, while prices received for finished goods fell to 7.3 from 11.2. Wages and benefits slid to 20.8 from 25.8, while the employment index climbed to 15.0 from 9.9, and the hours worked index decreased to 5.3 from 12.0, and the capital expenditures index surged to 14.1 from 7.0.
As for future outlook (six months from now), the general business conditions index grew to 17.6 from 15.2 last month, the production index decreased to 46.4 from 46.6, while capacity use fell to 39.0 from 40.2, the Fed reported. Volume of new orders crept to 42.1 from 41.9, while growth rate of orders index declined to 33.5 from 34.6.
Unfilled orders gained to 8.1 from 5.4, while the volume of shipments climbed to 42.3 from 39.1, and delivery times fell to negative 0.1 from positive 5.9. Materials inventories slid to 9.6 from 12.5, and the finished goods inventory dropped to negative 5.3 from positive 2.2.
Prices paid for raw materials fell to 32.6 from 40.9, while prices received for finished goods rose to 28.4 from 27.3. Wages and benefits increased to 47.6 from 42.8, the employment index dipped to 35.1 from 37.5, while the hours worked index dropped to 8.8 from 13.1, and the capital expenditures index fell to 15.8 from 25.0.
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.
