Dallas Fed
  • Prior was 2.0
  • Manufacturing output 14.5 vs 16.6 prior
  • New orders 23.1 vs 20.0 prior
  • Shipments 23.5 vs 8.6 prior
  • Prices paid for raw materials 73.4 vs 62.1 prior
  • Employment 18.4 vs 27.7 prior

This is a good reading after a fall from 7.8 to 2.0 last month.

Selected comments in the report:

- Concerns remain as supply-chain issues continue to increase on delivery of materials associated with maintenance and capital construction. Delivery dates are extending, or not even being committed to. The continued increase in inflationary pressures as well as the price of oil is significantly impacting the cost of doing business and forcing pricing increases to our customers.
- Demand remains strong and most customers expect it to maintain at least through the end of the year. I attended the International Home Builders Show last week in Orlando and everyone was optimistic regarding home building the balance of this year and possibly beyond.
-Manufacturing is the first to see cost increases and the last to be able to pass those increases on. Since September of 2021, we have seen the cost of production rise 40 percent. Prices have been adjusted accordingly and business activity has decreased, presumably from the shock of price increases to the buyers. Please quit printing money; quantitative easing since 2008 has destroyed our dollar.
-We have been hit with many increases in raw material prices; however, we have been able to pass this to our customers with price increases. I have never seen it easier to raise prices, as customers almost expect it now.
-Capacity is completely booked for 2022. Many customers are asking for 40–50 percent increases in shipments, and we can bring on 10–15 percent with perfect execution.
-The decrease in COVID cases brings more confidence.
-Raw material price increases are occurring so rapidly, and our company is having trouble adjusting our pricing to customers quickly enough to reflect the internal increases.
-We are predicting a downturn. The effect of strong inflation and rising interest rates will have a negative bias to the economy in general. (paper manufacturing)
-We continue to be quite a bit busier at this time of our fiscal year than we were last year at this time. We are four months into our fiscal year and tracking almost 50 percent above incoming orders, with some very large projects lining up for the upcoming months. I can’t explain it but am very glad to have the work, other than dealing with monster supply-chain issues and ever-increasing costs for materials and shipping.