Texas factory activity, as measured by the production index, "activity increased for the sixth consecutive month in December," according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Tuesday.
The general business activity index rose to 15.5 in December from 10.2 in November.
The production index gained to 13.8 in from 8.8.
Capacity use increased to 13.8 from 3.6, the Fed reported. Volume of new orders increased to positive 7.3 from negative 1.4, while growth rate of orders index widened to negative 3.4 from negative 0.8.
Unfilled orders slid to negative 2.9 from negative 2.5 in the prior survey, while the volume of shipments reversed to positive 4.7 from negative 1.9, and delivery times slipped to negative 7.7 from negative 3.1. The materials inventory index gained to negative 2.7 from negative 4.3, the finished goods inventory narrowed to negative 2.7 from negative 6.3. Prices paid for raw materials climbed to 28.1 from 18.2, while prices received for finished goods rose to 14.7 from 8.0. Wages and benefits increased to 18.7 from 18.4, while the employment index fell to negative 2.9 from positive 4.5, and the hours worked index crept to 2.7 from 2.5, and the capital expenditures index increased to 6.5 from 2.0.
As for future outlook (six months from now), the general business conditions index gained to 15.5 from 10.2 last month, the production index grew to 55.3 from 52.3, while capacity use climbed to 48.6 from 46.4, the Fed reported. Volume of new orders increased to 48.8 from 48.1, while growth rate of orders index fell to 35.3 from 42.4.
Unfilled orders slid to 11.1 from 14.3, while the volume of shipments jumped to 49.6 from 44.3, and delivery times reversed to positive 5.8 from negative 2.9. Materials inventories gained to 19.7 from 11.3, and the finished goods inventory rose to 11.3 from 3.8.
Prices paid for raw materials gained to 40.2 from 34.2, while prices received for finished goods decreased to 26.0 from 31.1. Wages and benefits grew to 42.9 from 40.4, the employment index rose to 37.6 from 30.6, while the hours worked index decreased to 13.5 from 19.2, and the capital expenditures index gained to 36.8 from 30.4.
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.
