The Dallas Federal Reserve said its latest manufacturing survey ticked 12.7.
Consensus expectation was for a reading of 12.8, up from 11.4 prior.
The new orders and capacity utilization indexes essentially doubled. Input price growth was unchanged. Hiring edged down slightly.
The comments from the Fed’s contacts reflect a much more uncertain future.
“Skilled employee turnover is getting out of control,” one manufacturer said. “There are too many employers chasing too few skilled workers.”
Another warned they were revising their forecasts downward for the second half of the year. “While we expect growth in the second half of the year over last year, we no longer believe we will have double-digit growth.”
But other sectors are seeing robust growth, especially those connected to drilling. “Oil and gas are driving Texas, not the normal everyday business,” one respondent said.
The production index improved to 19.1 — here’s what it’s looked like recently:
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