Dallas Fed manufacturing PMI -23.4 vs -15.7 prior | Forexlive

• Prior was -15.7
• Production output +0.9 vs +2.5 prior
• New orders -9.6 vs -14.3 prior
• Shipments -2.8 vs -10.5 prior
• Prices paid +19.5 vs +20.3 prior
• Prices received +8.4 vs +7.0 prior
• Company outlook -15.6 vs -13.3 prior
• Employment +8.0 vs +10.4 prior

This is the lowest reading since July but the underlying numbers aren’t as bad as the headline as there are bright spots.

Some of the comments in the report highlight availability problems, which is something the Fed is watching:

• The first quarter came in about as expected; all markets weakened with
  the exception of automotive. There are signs that inventories are
  building quickly in auto, so expect that market to weaken soon.
• We have already been notified that our credit line renewal may be
  difficult. Our monthly increase in costs (rate) is at highs not seen
  since 2007.
• Funding has dried up to purchase our products.
• There is a definite slowdown. New orders virtually stopped.
• We are starting to see a real slowdown. We are hoping it is short lived
• Almost all of our customers have high inventories from overbuying last
  year. So, they are all cutting back on ordering new inventory.
• Business has gotten stupid slow, and we estimate having many days of
  just a few hours’ work due to low volume. This is crazy—as busy as we
  were last year, and now for this year to have it turn off so quickly,
  it is hard to understand why. We hear from many others in our industry,
  and they are all saying the same thing: that it’s gotten slower without
  any signs of turning around in the near term. Perhaps it’s the Federal
  Reserve actions that are causing this.