DALLAS, April 29, 2025 — Recent data from the Dallas Federal Reserve indicates a significant decline in U.S. manufacturing activity, sparking renewed concerns over potential stagflation. The Dallas Fed’s Manufacturing Activity Indicator dropped to approximately -36, nearly 19 points below expectations. The report noted a sharp decline in new orders alongside a notable increase in prices paid, signaling mounting pressure on manufacturers.
According to analysts, the combination of falling output and rising costs could create challenging conditions for the broader U.S. economy. The U.S. dollar responded to the data by weakening in the currency markets.
In a related update, a recent Bloomberg survey of economists highlighted similar concerns, with respondents increasingly wary of simultaneous inflationary pressures and economic stagnation in the months ahead.
Meanwhile, trade dynamics in Asia are also drawing attention. Imports from Japan, South Korea, Taiwan, and Vietnam collectively surpassed those from China in early 2023. Analysts suggest this shift could complicate trade relations, particularly if these countries’ current account surpluses with the U.S. continue to widen.
Economists note that while tariffs were initially positioned as a revenue source, the broader impact on domestic consumers may be more significant than anticipated. Sentiment indicators suggest that cost pressures are likely being passed down to U.S. consumers, contributing to higher retail prices.
#EconomicUpdate #ManufacturingTrends #GlobalTradeFlows #InflationWatch #SupplyChainNews
