Texas factory activity, as measured by the production index, "increased for a third month in a row in December," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.
The general business activity index declined to negative 20.1 in December from negative 4.9 in November.
The production index improved to 13.4 from 5.2.
Capacity use grew to 7.8 from 5.9, the Fed reported. Volume of new orders decreased to negative 8.9 from negative 1.6, while growth rate of orders index widened to negative 14.3 from negative 7.3.
Unfilled orders slipped to negative 15.0 from negative 4.2 in the prior survey, while the volume of shipments rose to 7.6 from 4.2, and delivery times reversed to negative 4.4 from positive 1.0. The materials inventory index widened to negative 8.6 from negative 3.4, the finished goods inventory dipped to negative 6.0 from negative 5.7. Prices paid for raw materials fell to negative 8.6 from negative 5.1, while prices received for finished goods declined to negative 15.9 from negative 12.1. Wages and benefits increased to 20.4 from 16.0, while the employment index improved to 12.8 from 11.6, and the hours worked index soared to 15.2 from 9.9, and the capital expenditures index slipped to 1.7 from 2.1.
As for future outlook (six months from now), the general business conditions index dropped to negative 1.4 from positive 7.3 last month, the production index slipped to 29.8 from 34.1, while capacity use fell to 26.3 from 34.2, the Fed reported. Volume of new orders declined to 28.6 from 35.2, while growth rate of orders index decreased to 16.4 from 24.3.
Unfilled orders dipped to 2.2 from 4.1, while the volume of shipments slid to 25.7 from 36.3, and delivery times fell to negative 7.1 from negative 3.3. Materials inventories gained to 9.1 from 4.2, and the finished goods inventory reversed to positive 2.8 from negative 6.8.
Prices paid for raw materials slid to 15.6 from 22.0, while prices received for finished goods decreased to 8.3 from 12.9. Wages and benefits slipped to 29.7 from 33.6, the employment index decreased to 18.5 from 24.6, while the hours worked index dropped to 0.9 from 2.2, and the capital expenditures index rose to 18.4 from 14.0.
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.
