Dallas Fed sees activity slow, as prices ease in Nov.
Texas factory activity growth, as measured by the production index, “continued to expand in November, albeit at a markedly slower pace,” according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
“Price and wage increases eased in November,” according to the report.
The general business activity index declined to 17.6 in November from 29.4 in October.
The production index fell to 8.4 from 17.6.
Capacity utilization slid to 9.4 from 15.4, the Fed reported. New orders slumped to 9.7 from 18.9, while growth rate of orders index dropped to 4.8 from 11.0.
Unfilled orders slipped to 4.5 from 5.9, while shipments decreased to 7.7 from 16.6, and delivery times declined to 1.9 from 7.5. The finished goods inventory remained at 2.6. Prices paid for raw materials fell to 33.7 from 54.4, while prices received for finished goods dropped to 7.5 from 17.5. Wages and benefits decreased to 24.9 from 32.9, while the employment index dropped to 15.9 from 23.9, and the hours worked index slid to 4.9 from 6.5, and the capital expenditures index fell to 9.2 from 24.5.
As for future outlook (six months from now), the general business conditions index slid to 25.7 from 35.6 last month, the production index grew to 52.9 from 47.9, while capacity use increased to 43.4 from 38.9, the Fed reported. New orders gained to 47.8 from 46.1, while growth rate of orders index dropped to 32.1 from 36.5.
Unfilled orders slumped to 6.9 from 11.3, while shipments declined to 46.4 from 51.7, and delivery times fell to 1.7 from 9.8. The finished goods inventory dropped to 3.8 from 11.3.
Prices paid for raw materials declined to 36.2 from 42.1, while prices received for finished goods gained to 29.2 from 27.1. Wages and benefits fell to 44.8 from 51.4, the employment index rose to 42.0 from 32.8, while the hours worked index slipped to 9.3 from 14.3, and the capital expenditures index jumped to 34.1 from 28.0.
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.