Texas factory activity, as measured by the production index, "activity increased again in October," 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 1.5 in October from negative 3.7 in September.
The production index declined to 6.7 in from 16.7.
Capacity use dropped to 0.8 from 13.5, the Fed reported. Volume of new orders slipped to negative 3.5 from negative 2.9, while growth rate of orders index narrowed to negative 5.1 from negative 5.8.
Unfilled orders slid to negative 7.5 from negative 1.1 in the prior survey, while the volume of shipments plunged to 1.9 from 20.1, and delivery times slipped to negative 1.2 from positive 3.2. The materials inventory index improved to negative 5.5 from negative 7.7, the finished goods inventory reversed to positive 1.8 from negative 0.9. Prices paid for raw materials climbed to 13.7 from 13.3, while prices received for finished goods rose to positive 1.2 from negative 0.9. Wages and benefits decreased to 16.4 from 21.0, while the employment index fell to 0.2 from 2.3, and the hours worked index dropped to negative 1.8 from positive 3.7, and the capital expenditures index gained to 8.7 from 3.1.
As for future outlook (six months from now), the general business conditions index slid to 4.8 from 9.3 last month, the production index grew to 33.0 from 30.5, while capacity use climbed to 32.8 from 29.3, the Fed reported. Volume of new orders increased to 32.2 from 29.1, while growth rate of orders index rose to 23.5 from 19.1.
Unfilled orders slipped to 0.7 from 2.5, while the volume of shipments crept to 26.5 from 30.0, and delivery times widened to negative 5.6 from negative 1.3. Materials inventories declined to 0.9 from 1.9, and the finished goods inventory fell to 0.9 from 4.7.
Prices paid for raw materials gained to 25.9 from 25.2, while prices received for finished goods increased to 14.0 from 8.7. Wages and benefits grew to 36.4 from 31.2, the employment index dipped to 14.2 from 14.5, while the hours worked index slid to 2.8 from 6.1, and the capital expenditures index gained to 14.0 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.
