Dallas Fed Factory Growth Eases

The pace of Dallas factory growth, as in most other regions this month, eased back in November. The Dallas general activity index is at 19.4 this month vs an outsized 27.6 in October. All key readings are now at more sustainable levels: production at 15.1 vs October's 25.6, shipments 16.7 vs 20.9, employment 6.3 vs 16.7. Input price pressures and selling price traction are both holding steady but wages cooled, down 8 points to 14.2 and slightly below the average for this reading. But hinting at capacity pressures on employment and production in the coming months are new orders which, despite a 4.8 point dip, are still at a very strong 20.0.

Indications from the regional reports have been at or near record highs all year as have signs of strains in these reports including elevated employment readings and lengthening delivery times. Actual factory data out of Washington are only now beginning to show the acceleration first signaled by the various diffusion reports.

Recent History Of This Indicator:
Hurricane Harvey proved to have little effect on the Dallas Fed general activity index which has remained throughout. New orders have been especially positive and layoffs unusually low. Econoday's consensus for November's general activity index is 24.5.