Dallas Fed manufacturing business index -2.7 vs -3.0 prior

• Prior was -3.0
• Production -0.9 vs +14.6 prior
• New orders -11.9 vs -3.7 prior
• Capex +7.8 vs +4.6 prior
• Employment +4.9 vs -5.1 prior
• Outlook +5.8 vs -3.3

Comments in the report:

Chemical manufacturing

• Global industrial demand for chemicals remains stable but at low
  levels. Our outlook six months forward is for very slow improvement,
  but that outlook is uncertain due to risks of tariffs and the potential
  impact on global demand. Rising long-term rates remain a headwind for
  domestic construction activity and the resulting sluggish demand for PVC
  as construction material.
• Short-term, fourth-quarter raw material prices have increased,
  and the continuing decline in economic demand related to the automotive
  industry and building trades has created a large reduction in
  orders/volume. Longer term, the outcome of the election should benefit
  all U.S. businesses once policy is corrected and consumer confidence
  increases.

Computer and electronic product manufacturing

• We are delighted at the election outcome and expect this to be very good for our business.
• I believe we are seeing signs of cyclical bottoming. Several
  markets like consumer, communication and computers have clearly
  bottomed. Auto and industrial are still uncertain, but industrial is
  closer to a bottom.

Food manufacturing

• We are in a period of a bit of stagflation. It is compounded by
  the regime change. We do think the Trump administration will be
  healthy, particularly after the cabinet heads settle in, and free
  enterprise supported by domestic tranquility and the common defense
  become the norm.

Machinery manufacturing

• Hallelujah, the election is over, the
  results were unquestionably solid, work can be done, and attitudes are
  seemingly much improved. I do believe that six months from now we will
  prove to be at full throttle. We’ve held on the past year. We still
  have some rough water to navigate in the near term, but long term,
  things look mighty rosy in many areas of our marketplace. We’re optimistic, we’re encouraged, and we feel very blessed.
• Now that the election is over, we believe business will pick back up due to a more pro-business environment.

Paper manufacturing

• There is trending softness at this time.

Primary metal manufacturing

• The company outlook has improved due to capital expenditure to
  manufacture new products to enter new markets. Legacy business has
  declined, and new products will replace the decaying products.

Printing and related support activities

• We continue to be slow, which is very odd given how busy we were
  for most of the calendar year. We are hopeful things will pick up,
  which is why we predict in six months we should be busier, plus we do
  tend to be busier in the late spring to summer time frame.

Textile product mills

• Prices paid for finished goods have increased, and we are unsure
  of how potential tariffs will impact our cost of goods sold. Demand is
  also in question, and uncertainty is high.

Transportation equipment manufacturing

• There are things to work out nationally, but [we are] getting poised for growth.

Wood product manufacturing

• Things are good.

This article was written by Adam Button at www.forexlive.com.