Computer & Electronic Producers Under Pressure In Dallas Fed Survey

Whilst anecdotal, there are some notably negative comments from the computer & electronic product producers in the Dallas Fed manufacturing survey:

• "High interest rates are affecting industrial production like never before."
• "We have seen broader markets weaken with the exception of automotive. We have seen pull-ins from auto, likely due to preparation for the potential UAW strikes. Revenues in China are especially weak."
• "For the first time in a long time, we are seeing customers reduce or cancel orders due to softening end-use demand. We expect this trend to continue over the next few months. We continue to make capital investments, focusing on buying high-quality used manufacturing equipment at a discount when other people are pulling back because of uncertainty."
• "Customer orders came to a sudden halt. The overall volume dropped 51 percent year over year."