Dallas Fed manufacturing index -7.3 vs +1.10 prior

• Prior was +1.10
• Output +18.8 vs +10.8 prior
• New orders +3.2 vs +12.1 prior
• Shipments +13.1 vs +11.8 prior
• Prices paid for raw materials +61.8 vs +61.5 prior
• Prices paid for finished goods +41.8 vs +43.5 prior
• Employment +20.9 vs +24.6 prior
• Outlook -10.0 vs -5.5 prior

Selected comments from the report:

• Aluminum billet and ingot, our raw material, has become available and actually plentiful. Aluminum had been tight all year and last year. Our inventory is too large, so we called our competitors and tried to sell some excess. No one wanted to buy unless at a big discount. Things are slowing down.
• The inflation impact on new building growth is a concern, and tight labor is secondary.
• We are starting to see business slow down, with no clear indication on what we should expect going forward. This situation makes planning extremely difficult.
• Demand broadly continues to outstrip supply. We are seeing broad input costs going up. We are easily able to pass on higher costs to customers by increasing prices. (Computer and Electronic Product Manufacturing)
• We have plenty of demand, but production is constrained by truck chassis availability. We anticipate being able to begin to increase production by October and, therefore, have a more positive outlook for fourth quarter 2022 and beyond.
• Supply-chain issues may jeopardize our second-semester plans.
• We have seen a softening of demand as the consumer struggles with inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term and the reduction in government payments. We expect this softening to continue, and we will likely invest in additional promotional activities to maintain volume.
• We’ve been lucky to see continued sales growth; the growth rate slowed a bit in April but picked back up in May. We are seeing increased inventory and raw materials prices.
• I don’t want to create a false impression with the “no change” response; we have more business than we can handle and are turning down orders every day.
• The softness has been apparent for three weeks. We are currently running on good orders from six weeks ago. That will run out in approximately two to three weeks. New orders are down from the pace seen earlier this year.