Dallas Fed Survey shows that there are growing fears of a manufacturing recession

The most recent Federal Reserve Bank of Dallas survey The Texas Activity Report confirmed the existence of such activity manufacturing Sector continued to decline in December

General business activity in the state’s manufacturing industry plummeted to negative 18.8 in December, down from negative 14.4 in November. This was the eighth consecutive contraction. It also marks the third-worst reading in 2022.

There were mixed signals in the report readings which included responses from 90 Texas manufacturing companies. The report readings, which included responses from 90 Texas manufacturers, suggested mixed signals. The growth rate index for orders rose 11 points to negative 9.3, while the capacity utilization index moved to positive territory from negative 3.4 and 8.5. The shipments index rose nine points to 1.9, after two consecutive negative readings.

While there was stronger employment growth and a longer workweek on the labor fronts, wage and price indexes were flat.

Overall, the company outlook posted a negative 12.8 print, its tenth consecutive negative reading. The outlook uncertainty index fell five points to 15.6. The future general activity index came in at negative 8.3.

Plan for a Recession

Survey respondents’ answers were primarily bearish.

On June 8, 2015, Thompson Creek Window Company’s factory in Landover (Md.) was inaugurated. (Saul Loeb/AFP/Getty Images)

One paper manufacturing executive stated that the company is “dialing in the very increased forecast of a significant downturn.”

“Recession is now being planned for and acted upon,” According to the executive,

Leader in the printing business and related support activities has admitted that conditions are challenging “slowing down.”

“Estimating activity is really down from previous months, and incoming orders have dropped off as well,” The respondent said.

Participant in a survey on the electronic product manufacturing base reported a decline in new orders while inflationary aspects continued