Texas factory activity growth, as measured by the production index, “continued to expand in March,” but at a slower pace than in February, according to the monthly Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, released Monday.
“Perceptions of broader business conditions continued to improve in March, although outlooks were less optimistic than in February,” according to the report.
The general business activity index declined to 8.3 in March from 13.1 in February.
The production index gained to 11.5 from 10.1.
Capacity utilization rose to 10.9 from 7.1, the Fed reported. New orders slumped to 2.4 from 6.9, while growth rate of orders index dropped to negative 1.9 from positive 3.4.
Unfilled orders slid to 0.5 from 0.7, while shipments decreased to 5.8 from 10.7, and delivery times reversed to positive 4.1 from negative 1.3. The finished goods inventory climbed to positive 1.7 from negative 2.5. Prices paid for raw materials dipped to 20.4 from 21.8, while prices received for finished goods grew to 6.9 from 5.2. Wages and benefits increased to 30.1 from 28.9, while the employment index rose to 13.1 from 12.6, and the hours worked index jumped to 4.6 from 1.8, and the capital expenditures index fell to 12.1 from 18.7.
As for future outlook (six months from now), the general business conditions index grew to 19.7 from 17.7 last month, the production index gained to 51.3 from 44.3, while capacity use increased to 48.2 from 40.1, the Fed reported. New orders slid to 43.5 from 44.9, while growth rate of orders index climbed to 32.6 from 30.8.
Unfilled orders slid to 10.7 from 10.8, while shipments grew to 45.4 from 44.7, and delivery times jumped to 9.6 from 8.7. The finished goods inventory soared to 9.1 from 5.4.
Prices paid for raw materials gained to 28.2 from 23.7, while prices received for finished goods slid to 20.0 from 25.9. Wages and benefits jumped to 54.4 from 47.0, the employment index rose to 37.9 from 33.2, while the hours worked index climbed to 14.4 from 11.4, and the capital expenditures index rose to 36.2 from 24.0.
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.
