“Texas manufacturing activity continued to soften in December,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business conditions index declined to negative 23.9 in December from negative 17.0 in November.
The production index slumped to negative 19.1 in December from negative 3.5 in November, while capacity use plunged to negative 17.4 from negative 1.7, the Fed reported. Volume of new orders increased to negative 7.9 from negative 10.6, while growth rate of orders index fell to negative 15.8 from negative 11.4.
Unfilled orders improved to negative 6.1 from negative 9.9 in the prior survey, while the volume of shipments declined to negative 16.5 from negative 1.7, and delivery times gained to negative 4.3 from negative 7.9. The materials inventory index decreased to negative 12.1 from negative 6.2, the finished goods inventory decreased to negative 9.6 from negative 3.6. Prices paid for raw materials rose to 30.4 from 28.3, while prices received for finished goods grew to 11.3 from 8.7. Wages and benefits decreased to 15.8 from 25.4, while the number of employees index slid to negative 7.0 from negative 0.9, and the average workweek index fell to negative 11.3 from negative 2.6, and the capital expenditures index slipped to 4.4 from 11.5.
As for future outlook, six months from now, the general business conditions index inched down to negative 7.2 from negative 6.2 last month, the production index increased to 34.2 from 26.6, while capacity use rose to 33.3 from 18.6, the Fed reported. Volume of new orders rose to 31.6 from 28.4, while growth rate of orders index increased to 21.2 from 13.3.
Unfilled orders improved to 6.3 from zero in the prior survey, while the volume of shipments gained to 36.8 from 28.6 and delivery times improved to negative 1.8 from negative 7.3. Materials inventories recovered to positive 0.9 from negative 7.2, the finished goods inventory increased to 3.5 from zero.
Prices paid for raw materials remained at 45.6, while prices received for finished goods crept to 26.3 from 25.7. Wages and benefits slid to 45.6 from 51.3, the number of employees index rose to 26.6 from 16.8, while the average workweek index soared to 11.4 from 0.9, and the capital expenditures index fell to 10.6 from 16.1.
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.
