Dallas Fed manufacturing business index +14.1 vs +3.4 prior ...Middle East

forex live - News
Dallas Fed manufacturing business index +14.1 vs +3.4 prior
Prior was +3.4 (revised to +4.5)Production +12.2 vs +5.3 priorNew orders +7.7 vs +1.5 priorOutlook +18.7 vs +12.3 prior

Comments in the report:

Computer and electronic product manufacturing

    The outlook is improved because we are subcontractors to a large government grant that got a funding notice. There are some worries—one being the impact of the new administration on the existing grant structure.There are clear signs of markets starting to inflect up with the exception of automobiles. The China automobile market remains strong, all other markets are weak, and Europe is very weak.We are seeing generally good spirits among our customers. We continue to see pushback against price increases, and people are more aware of pricing than they had been in the past, especially during 2021–22. We continue to invest in new equipment to increase productivity. Wages continue to increase due to inflation. We definitely see more people looking for work than in the past, so our voluntary turnover is almost zero.

    Fabricated metal product manufacturing

    We saw demand and production dip in November/December 2024 and are expecting a tick up in the first quarter. We do not expect a significant full year increase in production this year versus 2024.We are still waiting on some large projects to be released that have been on hold.We are not able to forecast even six months forward. Any changes will be based off the Fed, economy, and inflation. Two or three rate cuts in 2025 should offer sustained betterment. No further rate cuts and timing a longer pause than expected might be the best path forward for inflation but will definitely depress betterment for our business and customer demand.

    New customers and new orders from existing customers are driving production volume growth.Tariffs, tariffs, tariffs.

    Machinery manufacturing

    The start of the year has been extremely positive with a sharp increase in volume of new orders received. With a positive business environment, we expect this trend to continue.There is a lot of chatter in the market about President Trump’s plans. We believe that they will turn into a robust economy over the next few months.The pall has lifted. Our industry is absolutely giddy with November's election outcome and the proposed Cabinet members hopefully soon to be confirmed. Personally, I feel our state is more optimistic now that an open border will close, common sense in policymaking will prevail, and free enterprise will be the beneficiary. Our phones are thankfully ringing like they haven't in quite some time.Inflation is killing us. With finished goods inventory and raw material inventories both substantially reduced, our cost of operation increased over 20 percent in 2024, which is disastrous considering we cannot raise prices to offset the costs.2025 is going to be great.

    We have experienced weakness in orders for the last four weeks. Our outlook is starting to be affected.

    Printing and related support activities

    We are still in a low volume of activity funk with signs of things picking up soon. It's crazy how slow we have been over the past four months. Right now we are not hearing about many price increases; however, with the threat of tariffs, if they do occur, we will be forced to pass them through since our raw material costs subject to tariffs will increase.

    Textile product mills

    We have seen sales dip from December but improve year over year (to be expected as December is one of our busiest months). It seems peer companies and consumers are more optimistic about the economy this year versus last quarter but we aren't sure the impact potential tariffs may have on our raw materials.

    Transportation equipment manufacturing

    We are starting to see an improvement in the confidence of our customers with the new administration. This article was written by Adam Button at www.forexlive.com.

    Read More Details
    Finally We wish PressBee provided you with enough information of ( Dallas Fed manufacturing business index +14.1 vs +3.4 prior )

    Also on site :