Dallas Fed manufacturing Sept 2022
  • Prior was -12.9
  • Employment 15.0 vs 15.6 last month
  • Hours worked 8.0 from 14.4 last month
  • New orders -6.4 from -4.4 last month
  • Production 9.3 vs 1.2 last month
  • Raw material price paid 37.1 vs 34.4 last month
  • Prices received 18.1 vs 26.8 last month month
  • Shipments 7.1 vs 3.4 last month
  • Growth rate of new orders -1.7 vs -14.7 last month
  • Finished goods inventories 3.3 vs 1.2 last month
  • Wages and benefits 36.6 vs 45.8 last month
  • Capital expenditures 13.6 vs 14.2 last month

The inflation metrics are sliding. Unfortunately, so are the growth measures.

Comments in the report:

  • Our order rate has decreased over the past month. We are only working four days on some of our equipment.
  • Although we continue to see surges in new orders, there are still several uncertainties and key issues that give us pause on overall business conditions.
  • We see the general economic situation worsening, but our customers are still buying because the oil industry is still making money and they see a bright future even though they will not talk about it. Therefore, we have hired a few new people to support the business that is coming over the next couple of months.
  • The personal electronics market shows signs of weakness and is expected to weaken further. Other markets, especially automobiles, remain strong. Inventory builds are reported throughout all channels.
  • There is no optimism in the most positive outlook. Interest rate hikes will hit our industry har (transport equip)
  • We are beginning to see a slowdown in requests for bids on projects.
  • We have seen a dramatic shift in consumer behavior and it is impacting our volume. Beginning in May, demand for our premium products started to wane as consumers shifted to less-expensive brands. This has accelerated as fuel and other costs have risen.
  • Sales have started to slow this summer, as has our general outlook on business over the short and long term.
  • Workforce shortages remain. Hiring is expensive or nonexistent. Customers are becoming more restless and looking for better service and price. Inflation is on everyone’s mind. It is not a healthy environment.