Texas factory activity, as measured by the production index, rose faster in July than in June, according to the monthly business activity survey by the Federal Reserve Bank of Dallas.
The general business conditions index improved to negative 2.0 in July from negative 17.5 in June. The production index rose to 10.8 from 5.6, while capacity use reversed to positive 0.6 from negative 0.8. Volume of new orders gained to 16.0 from 6.4, and growth rate of orders index increased to 2.5 from 2.3.
Unfilled orders surged to positive 8.2 from negative 6.2 in the previous survey, while the volume of shipments grew to 7.8 from 0.4, and delivery times improved to 3.5 from 1.2. The materials inventory index slid to 5.4 from 6.5 and the finished goods inventory remained zero.
Prices paid for raw materials rose to 34.3 from 31.1, while prices received for finished goods declined to 4.6 from 10.0. Wages and benefits jumped to 18.4 from 15.5, the employment index climbed to 12.1 from 5.3, the average workweek index rose to 7.9 from 1.5, and the capital expenditures index reversed to negative 2.3 from positive 2.4.
As for the future outlook six months from now, the general business conditions index grew to 3.7 from 2.9 last month, the production index increased to 38.8 from 37.1, and capacity use increased to 30.5 from 27.4, the Fed reported.