Texas factory activity, as measured by the production index, "activity increased again in November," according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index soared to positive 10.2 in November from negative 1.5 in October.
The production index gained to 8.8 in from 6.7.
Capacity use increased to 3.6 from 0.8, the Fed reported. Volume of new orders narrowed to negative 1.4 from negative 3.5, while growth rate of orders index improved to negative 0.8 from negative 5.1.
Unfilled orders rose to negative 2.5 from negative 7.5 in the prior survey, while the volume of shipments reversed to negative 1.9 from positive 1.9, and delivery times slipped to negative 3.1 from negative 1.2. The materials inventory index gained to negative 4.3 from negative 5.5, the finished goods inventory fell to negative 6.3 from positive 1.8. Prices paid for raw materials climbed to 18.2 from 13.7, while prices received for finished goods rose to 8.0 from 1.2. Wages and benefits increased to 18.4 from 16.4, while the employment index grew to 4.5 from 0.2, and the hours worked index jumped to positive 2.5 from negative 1.8, and the capital expenditures index slid to 2.0 from 8.7.
As for future outlook (six months from now), the general business conditions index surged to 31.6 from 4.8 last month, the production index grew to 52.3 from 33.0, while capacity use climbed to 46.4 from 32.8, the Fed reported. Volume of new orders increased to 48.1 from 32.2, while growth rate of orders index rose to 42.4 from 23.5.
Unfilled orders soared to 14.3 from 0.7, while the volume of shipments jumped to 44.3 from 26.5, and delivery times narrowed to negative 2.9 from negative 5.6. Materials inventories gained to 11.3 from 0.9, and the finished goods inventory rose to 3.8 from 0.9.
Prices paid for raw materials gained to 34.2 from 25.9, while prices received for finished goods increased to 31.1 from 14.0. Wages and benefits grew to 40.4 from 36.4, the employment index rose to 30.6 from 14.2, while the hours worked index increased to 19.2 from 2.8, and the capital expenditures index gained to 30.4 from 14.0.
The Texas Manufacturing Outlook Survey is a monthly anecdotal survey of manufacturers in Texas. Over 100 manufacturers regularly participate in the Dallas Fed survey, which began collecting data in May 2004.
