As we await a maelstrom of Level 1 macro data this week, you could be forgiven glancing wistfully at this morning's Dallas Fed Manufacturing survey's modest headline beat (small decline MoM) and thinking "meh."
That would be a mistake...
Production is soaring (yay!!) and is forecast to remain strong...
Employment is up (yay)... BUT is expected to plunge...
And more worryingly, Prices Paid and expected Prices Received are accelerating again...
Ok so with all that in mind, here are the (uniformly negative) responses from the surveyed group of manufacturers. They don't sound like a bunch of business owners expecting new orders and production to improve...
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Tariffs and fuel prices are affecting incoming and outgoing products/costs. Customers have hit the limit on what they can pay. We are getting pushback and cancellations (Beverage and tobacco product manufacturing
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Fuel costs (diesel, in particular) are adversely impacting our bottom line and that of our customers. We'd welcome a quicker resolution to the conflict with Iran as we believe that could potentially provide more favorable outcomes, improved margins and stability in interest rates. Insurance rates continue to increase in cost with a decrease in coverage. Overall, however, we continue to expand operations with an ever-increasing backlog that will provide a record year of revenue and net inco
