Texas factory activity, as measured by the production index, "activity increased markedly in September," according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index narrowed to negative 3.7 in September from negative 6.2 in August.
The production index improved to 16.7 in from 4.5.
Capacity use rose to 13.5 from 0.9, the Fed reported. Volume of new orders reversed to negative 2.9 from positive 5.3, while growth rate of orders index slumped to negative 5.8 from positive 2.1.
Unfilled orders rose to negative 1.1 from negative 4.5 in the prior survey, while the volume of shipments increased to 20.1 from 9.9, and delivery times slipped to 3.2 from 5.8. The materials inventory index widened to negative 7.7 from negative 3.8, the finished goods inventory gained to negative 0.9 from negative 6.3. Prices paid for raw materials fell to 13.3 from 14.1, while prices received for finished goods climbed to negative 0.9 from negative 1.3. Wages and benefits grew to 21.0 from 13.7, while the employment index rose to positive 2.3 from negative 5.0, and the hours worked index increased to positive 3.7 from negative 4.5, and the capital expenditures index reversed to positive 3.1 from negative 5.7.
As for future outlook (six months from now), the general business conditions index grew to 9.3 from 7.0 last month, the production index fell to 30.5 from 32.8, while capacity use dropped to 29.3 from 30.6, the Fed reported. Volume of new orders decreased to 29.1 from 38.6, while growth rate of orders index fell to 19.1 from 27.2.
Unfilled orders dipped to 2.5 from 3.4, while the volume of shipments slid to 26.1 from 30.0, and delivery times decreased to negative 1.5 from negative 1.3. Materials inventories reversed to positive 1.9 from negative 1.9, and the finished goods inventory rose to 5.8 from 4.7.
Prices paid for raw materials gained to 25.2 from 18.0, while prices received for finished goods increased to 8.7 from 7.6. Wages and benefits fell to 31.2 from 38.1, the employment index dropped to 14.5 from 21.7, while the hours worked index slid to 6.1 from 9.2, and the capital expenditures index declined to 13.5 from 14.7.
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.
